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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2019	Oct. 14, 2019
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2019
Document Transition Report	false
Entity File Number	1-11840
Entity Registrant Name	ALLSTATE CORP
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	36-3871531
Entity Address, Address Line One	2775 Sanders Road
Entity Address, City or Town	Northbrook
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	60062
City Area Code	847
Local Phone Number	402-5000
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		323,956,116
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Central Index Key	0000899051
NEW YORK STOCK EXCHANGE, INC. \| Common stock par value
Document Information [Line Items]
Title of 12(b) Security	Common Stock, par value $.01 per share
Trading Symbol	ALL
Security Exchange Name	NYSE
NEW YORK STOCK EXCHANGE, INC. \| Subordinated Debentures Due 2053 at 5.10 Percent
Document Information [Line Items]
Title of 12(b) Security	5.100% Fixed-to-Floating Rate Subordinated Debentures due 2053
Trading Symbol	ALL.PR.B
Security Exchange Name	NYSE
NEW YORK STOCK EXCHANGE, INC. \| Series A Preferred Stock
Document Information [Line Items]
Title of 12(b) Security	Depositary Shares represent 1/1,000th of a share of 5.625% Noncumulative Preferred Stock, Series A
Trading Symbol	ALL PR A
Security Exchange Name	NYSE
NEW YORK STOCK EXCHANGE, INC. \| Series G Preferred Stock
Document Information [Line Items]
Title of 12(b) Security	Depositary Shares represent 1/1,000th of a share of 5.625% Noncumulative Preferred Stock, Series G
Trading Symbol	ALL PR G
Security Exchange Name	NYSE
NEW YORK STOCK EXCHANGE, INC. \| Series H Preferred Stock
Document Information [Line Items]
Title of 12(b) Security	Depositary Shares represent 1/1,000th of a share of 5.100% Noncumulative Preferred Stock, Series H
Trading Symbol	ALL PR H
Security Exchange Name	NYSE
CHICAGO STOCK EXCHANGE, INC \| Common stock par value
Document Information [Line Items]
Title of 12(b) Security	Common Stock, par value $.01 per share
Trading Symbol	ALL
Security Exchange Name	CHX

Condensed Consolidated Statements of Operations (unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenues
Net investment income	$ 880	$ 844	$ 2,470	$ 2,454
Realized capital gains and losses:
Total other-than-temporary impairment (“OTTI”) losses	(16)	(4)	(44)	(8)
OTTI losses reclassified to (from) other comprehensive income (OCI)	2	(1)	1	(2)
Net OTTI losses recognized in earnings	(14)	(5)	(43)	(10)
Sales and valuation changes on equity investments and derivatives	211	181	1,226	27
Total realized capital gains and losses	197	176	1,183	17
Total revenues	11,069	10,465	33,203	30,334
Costs and expenses
Property and casualty insurance claims and claims expense	6,051	5,805	18,227	16,711
Life contract benefits	513	498	1,521	1,485
Interest credited to contractholder funds	169	163	487	489
Amortization of deferred policy acquisition costs	1,425	1,317	4,151	3,886
Operating costs and expenses	1,414	1,425	4,174	4,086
Pension and other postretirement remeasurement gains and losses	225	(39)	365	(32)
Restructuring and related charges	0	13	27	55
Amortization of purchased intangibles	32	24	96	69
Impairment of purchased intangibles	0	0	55	0
Interest expense	80	82	245	251
Total costs and expenses	9,909	9,288	29,348	27,000
Gain on disposition of operations	0	1	3	4
Income from operations before income tax expense	1,160	1,178	3,858	3,338
Income tax expense	229	199	784	636
Net income	931	979	3,074	2,702
Preferred stock dividends	42	37	103	105
Net income applicable to common shareholders	$ 889	$ 942	$ 2,971	$ 2,597
Earnings per common share
Net income available to common shareholders per common share - Basic (in dollars per share)	$ 2.71	$ 2.72	$ 8.98	$ 7.43
Weighted average common shares - Basic (in shares)	327.7	346.0	330.8	349.7
Net income available to common shareholders per common share - Diluted (in dollars per share)	$ 2.67	$ 2.68	$ 8.85	$ 7.31
Weighted average common shares - Diluted (in shares)	333.0	351.7	335.7	355.4
Property and casualty insurance premiums
Revenues
Revenues	$ 9,094	$ 8,595	$ 26,882	$ 25,341
Life premiums and contract charges
Revenues
Revenues	625	612	1,874	1,840
Other revenue
Revenues
Revenues	$ 273	$ 238	$ 794	$ 682

Condensed Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Statement of Comprehensive Income [Abstract]
Net income	$ 931	$ 979	$ 3,074	$ 2,702
Changes in:
Unrealized net capital gains and losses	369	(70)	2,025	(768)
Unrealized foreign currency translation adjustments	(10)	(14)	(1)	(22)
Unamortized pension and other postretirement prior service credit	(12)	(15)	(35)	(45)
Other comprehensive income (loss), after-tax	347	(99)	1,989	(835)
Comprehensive income	$ 1,278	$ 880	$ 5,063	$ 1,867

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Condensed Consolidated Statements of Financial Position (unaudited) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Investments
Fixed income securities, at fair value (amortized cost $56,263 and $57,134)	$ 59,259	$ 57,170
Equity securities, at fair value (cost $6,930 and $4,489)	8,206	5,036
Mortgage loans	4,694	4,670
Limited partnership interests	7,990	7,505
Short-term, at fair value (amortized cost $5,254 and $3,027)	5,254	3,027
Other	3,904	3,852
Total investments	89,307	81,260
Cash	587	499
Premium installment receivables, net	6,558	6,154
Deferred policy acquisition costs	4,683	4,784
Reinsurance and indemnification recoverables, net	9,363	9,565
Accrued investment income	613	600
Property and equipment, net	1,092	1,045
Goodwill	2,545	2,530
Other assets	3,383	3,007
Separate Accounts	2,942	2,805
Total assets	121,073	112,249
Liabilities
Reserve for property and casualty insurance claims and claims expense	28,076	27,423
Reserve for life-contingent contract benefits	12,378	12,208
Contractholder funds	17,804	18,371
Unearned premiums	15,343	14,510
Claim payments outstanding	952	1,007
Deferred income taxes	1,079	425
Other liabilities and accrued expenses	9,729	7,737
Long-term debt	6,630	6,451
Separate Accounts	2,942	2,805
Total liabilities	94,933	90,937
Commitments and Contingent Liabilities (Note 12)
Shareholders’ equity
Preferred stock and additional capital paid-in, $1 par value, 25 million shares authorized, 125.8 thousand and 79.8 thousand shares issued and outstanding, $3,145 and $1,995 aggregate liquidation preference	3,052	1,930
Common stock, $.01 par value, 2.0 billion shares authorized and 900 million issued, 325 million and 332 million shares outstanding	9	9
Additional capital paid-in	3,511	3,310
Retained income	46,527	44,033
Deferred Employee Stock Ownership Plan (“ESOP”) expense	(3)	(3)
Treasury stock, at cost (575 million and 568 million shares)	(29,063)	(28,085)
Unrealized net capital gains and losses:
Unrealized net capital gains and losses on fixed income securities with OTTI	82	75
Other unrealized net capital gains and losses	2,276	(51)
Unrealized adjustment to DAC, DSI and insurance reserves	(335)	(26)
Total unrealized net capital gains and losses	2,023	(2)
Unrealized foreign currency translation adjustments	(50)	(49)
Unamortized pension and other postretirement prior service credit	134	169
Total accumulated other comprehensive income (“AOCI”)	2,107	118
Total shareholders’ equity	26,140	21,312
Total liabilities and shareholders’ equity	$ 121,073	$ 112,249

Condensed Consolidated Statements of Financial Position (Parenthetical) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Fixed income securities, at fair value, amortized cost (in dollars)	$ 56,263	$ 57,134
Equity securities, at fair value, cost (in dollars)	6,930	4,489
Short-term, at fair value, amortized cost (in dollars)	$ 5,254	$ 3,027
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred stock, shares authorized (in shares)	25,000,000	25,000,000
Preferred stock, shares issued (in shares)	125,800	79,800
Preferred stock, shares outstanding (in shares)	125,800	79,800
Preferred stock, shares aggregate liquidation preference (in shares)	$ 3,145	$ 1,995
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	2,000,000,000	2,000,000,000
Common stock, shares issued (in shares)	900,000,000	900,000,000
Common stock, shares outstanding (in shares)	325,000,000	332,000,000
Treasury Stock, shares (in shares)	575,000,000	568,000,000

Condensed Consolidated Statements of Shareholders’ Equity (unaudited) - USD ($) $ in Millions	Total	Preferred Stock	Preferred stock additional capital paid-in	Common stock par value	Common stock additional capital paid-in	Retained income	Deferred ESOP expense	Treasury stock	Accumulated other comprehensive income (loss)
Balance, beginning of period at Dec. 31, 2017			$ 1,746		$ 3,313	$ 41,579		$ (25,982)	$ 1,889
Increase (decrease) in equity
Preferred stock issuance, net of issuance costs			557
Forward contract on accelerated share repurchase agreement					45
Activity under equity incentive plans					83
Net income	$ 2,702					2,702
Dividends on common stock (declared per share of $0.50, $0.46, $1.50 and $1.38)						(488)
Dividends on preferred stock						(105)
Shares acquired								(1,117)
Shares reissued under equity incentive plans, net								88
Change in unrealized net capital gains and losses	(768)								(768)
Change in unrealized foreign currency translation adjustments	(22)								(22)
Change in unamortized pension and other postretirement prior service credit	(45)								(45)
Balance, end of period at Sep. 30, 2018	$ 23,659	$ 0	2,303	$ 9	3,441	44,776	$ (3)	(27,011)	144
Increase (decrease) in equity
Dividends (in USD per share)	$ 1.38
Balance, beginning of period at Jun. 30, 2018			2,303		3,391	43,997		(26,818)	243
Increase (decrease) in equity
Preferred stock issuance, net of issuance costs			0
Forward contract on accelerated share repurchase agreement					0
Activity under equity incentive plans					50
Net income	$ 979					979
Dividends on common stock (declared per share of $0.50, $0.46, $1.50 and $1.38)						(163)
Dividends on preferred stock						(37)
Shares acquired								(225)
Shares reissued under equity incentive plans, net								32
Change in unrealized net capital gains and losses	(70)								(70)
Change in unrealized foreign currency translation adjustments	(14)								(14)
Change in unamortized pension and other postretirement prior service credit	(15)								(15)
Balance, end of period at Sep. 30, 2018	$ 23,659	0	2,303	9	3,441	44,776	(3)	(27,011)	144
Increase (decrease) in equity
Dividends (in USD per share)	$ 0.46
Balance, beginning of period at Dec. 31, 2018	$ 21,312		1,930		3,310	44,033		(28,085)	118
Increase (decrease) in equity
Preferred stock issuance, net of issuance costs			1,122
Forward contract on accelerated share repurchase agreement					150
Activity under equity incentive plans					51
Net income	3,074					3,074
Dividends on common stock (declared per share of $0.50, $0.46, $1.50 and $1.38)						(498)
Dividends on preferred stock						(103)
Shares acquired								(1,107)
Shares reissued under equity incentive plans, net								129
Change in unrealized net capital gains and losses	2,025								2,025
Change in unrealized foreign currency translation adjustments	(1)								(1)
Change in unamortized pension and other postretirement prior service credit	(35)								(35)
Balance, end of period at Sep. 30, 2019	$ 26,140	0	3,052	9	3,511	46,527	(3)	(29,063)	2,107
Increase (decrease) in equity
Dividends (in USD per share)	$ 1.5
Balance, beginning of period at Jun. 30, 2019			1,930		3,477	45,803		(28,500)	1,760
Increase (decrease) in equity
Preferred stock issuance, net of issuance costs			1,122
Forward contract on accelerated share repurchase agreement					0
Activity under equity incentive plans					34
Net income	$ 931					931
Dividends on common stock (declared per share of $0.50, $0.46, $1.50 and $1.38)						(165)
Dividends on preferred stock						(42)
Shares acquired								(609)
Shares reissued under equity incentive plans, net								46
Change in unrealized net capital gains and losses	369								369
Change in unrealized foreign currency translation adjustments	(10)								(10)
Change in unamortized pension and other postretirement prior service credit	(12)								(12)
Balance, end of period at Sep. 30, 2019	$ 26,140	$ 0	$ 3,052	$ 9	$ 3,511	$ 46,527	$ (3)	$ (29,063)	$ 2,107
Increase (decrease) in equity
Dividends (in USD per share)	$ 0.5

Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash flows from operating activities
Net income	$ 3,074	$ 2,702
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and other non-cash items	476	376
Realized capital gains and losses	(1,183)	(17)
Pension and other postretirement remeasurement gains and losses	365	(32)
Gain on disposition of operations	(3)	(4)
Interest credited to contractholder funds	487	489
Impairment of purchased intangibles	55	0
Changes in:
Policy benefits and other insurance reserves	29	90
Unearned premiums	813	785
Deferred policy acquisition costs	(66)	(203)
Premium installment receivables, net	(392)	(422)
Reinsurance recoverables, net	167	(103)
Income taxes	254	(178)
Other operating assets and liabilities	(181)	335
Net cash provided by operating activities	3,895	3,818
Proceeds from sales
Fixed income securities	23,075	26,223
Equity securities	3,735	4,637
Limited partnership interests	557	490
Other investments	279	234
Investment collections
Fixed income securities	1,847	2,388
Mortgage loans	451	378
Other investments	203	370
Investment purchases
Fixed income securities	(23,536)	(29,049)
Equity securities	(6,080)	(4,791)
Limited partnership interests	(989)	(1,317)
Mortgage loans	(475)	(435)
Other investments	(548)	(686)
Change in short-term investments, net	(1,509)	(665)
Change in other investments, net	66	(28)
Purchases of property and equipment, net	(293)	(195)
Acquisition of operations	(18)	(10)
Net cash used in investing activities	(3,235)	(2,456)
Cash flows from financing activities
Proceeds from issuance of long-term debt	491	498
Redemption and repayment of long-term debt	(317)	(401)
Proceeds from issuance of preferred stock	1,122	557
Contractholder fund deposits	751	756
Contractholder fund withdrawals	(1,278)	(1,474)
Dividends paid on common stock	(490)	(455)
Dividends paid on preferred stock	(92)	(97)
Treasury stock purchases	(936)	(1,062)
Shares reissued under equity incentive plans, net	98	66
Other	79	93
Net cash used in financing activities	(572)	(1,519)
Net increase (decrease) in cash	88	(157)
Cash at beginning of period	499	617
Cash at end of period	$ 587	$ 460

General

9 Months Ended

Sep. 30, 2019

General [Abstract]

General



Note 1	General

Basis of presentation

The accompanying condensed consolidated financial statements include the accounts of The Allstate Corporation (the “Corporation”) and its wholly owned subsidiaries, primarily Allstate Insurance Company (“AIC”), a property and casualty insurance company with various property and casualty and life and investment subsidiaries, including Allstate Life Insurance Company (“ALIC”) (collectively referred to as the “Company” or “Allstate”). These condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”).

The condensed consolidated financial statements and notes as of September 30, 2019 and for the three and nine month periods ended September 30, 2019 and 2018 are unaudited. The condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring accruals) which are, in the opinion of management, necessary for the fair presentation of the financial position, results of operations and cash flows for the interim periods.

These condensed consolidated financial statements and notes should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2018, filed February 15, 2019, and the Company’s Current Report on Form 8-K filed on May 16, 2019, Exhibit 99.1, reflecting the Company’s 2018 Form 10-K with adjustments to Part II. Item 6., Item 7. and Item 8. for the Company’s change in accounting principle for pension and other postretirement benefit plans. The results of operations for the interim periods should not be considered indicative of results to be expected for the full year. All significant intercompany accounts and transactions have been eliminated.

Impairment of purchased intangibles

During the second quarter of 2019, the Company made the decision to phase-out the use of the SquareTrade trade name in the United States and sell consumer protection plans under the Allstate Protection Plans’ name. The SquareTrade trade name will continue to be used outside of the United States. The change in the second quarter of 2019 required an impairment evaluation of the indefinite-lived intangible asset recognized in the Service Businesses segment for SquareTrade’s trade name that was recorded when SquareTrade was acquired in 2017.

As a result, the Company recognized an impairment of $55 million pre-tax during the second quarter of 2019.

Adopted accounting standards

Accounting for Leases Effective January 1, 2019 the Company adopted new Financial Accounting Standards Board (“FASB”) guidance related to accounting for leases. Upon adoption of the guidance under the optional transition method that allows application of the transition provisions at the adoption date instead of the earliest period presented, the Company recorded a $585 million lease liability equal to the present value of lease payments and a $488 million right-of-use (“ROU”) asset, which is the corresponding lease liability adjusted for qualifying accrued lease payments. The lease liability and ROU asset were reported as part of other liabilities and other assets on the Condensed Consolidated Statements of Financial Position. The impact of these changes at adoption had no impact on net income or shareholders’ equity. Prior periods were not restated under the new standard. The Company utilized practical expedients which do not require reassessment of existing contracts for the existence of a lease or reassessment of existing lease classifications.

Upon adoption, the new guidance required sellers in a sale-leaseback transaction to recognize the entire gain from the sale of an underlying asset at the time the sale is recognized rather than over the leaseback term. The carrying value of unrecognized gains on sale-leaseback transactions executed prior to January 1, 2019 was $21 million, after-tax, and was recorded as an increase to retained income at the date of adoption.

Accounting for Hedging Activities Effective January 1, 2019 the Company adopted new FASB guidance intended to better align hedge accounting with an organization’s risk management activities. The new guidance expands hedge accounting to nonfinancial and financial risk components and revises the measurement methodologies. Separate presentation of hedge ineffectiveness is eliminated with the intention to provide greater transparency to the full impact of hedging by requiring presentation of the results of the hedged item and hedging instrument in a single financial statement line item. In addition, the amendments were designed to reduce complexity by simplifying hedge effectiveness testing. The adoption had no impact on the Company’s results of operations or financial position.

Changes to significant accounting policies

Leases The Company has certain operating leases for office facilities, computer and office equipment, and vehicles. The Company’s leases have remaining lease terms of 1 year to 10 years, some of which include options to extend the leases for up to 20 years, and some of which include options to terminate the leases within 60 days.

The Company determines if an arrangement is a lease at inception. Leases with an initial term less than one year are not recorded on the balance sheet and the lease costs for these leases are recorded as an expense on a straight-line basis over the lease term. Operating leases with terms greater than one year result in a lease liability recorded in other liabilities with a corresponding ROU asset recorded in other assets. As of September 30, 2019, the Company had $542 million in lease liabilities and $443 million in ROU assets.

Operating lease liabilities are recognized at the commencement date based on the present value of future minimum lease payments over the lease term. ROU assets are recognized based on the corresponding lease liabilities adjusted for qualifying initial direct costs, prepaid or accrued lease payments and unamortized lease incentives. As most of the Company’s leases do not disclose the implicit interest rate, the Company uses collateralized incremental borrowing rates based on information available at lease commencement when determining the present value of future lease payments. The Company has lease agreements with lease and non-lease components, which are generally accounted for as a single lease. Lease terms may include options to extend or terminate the lease which are incorporated into the Company’s measurements when it is reasonably certain that the Company will exercise the option.

Operating lease costs are recognized on a straight-line basis over the lease term and include interest expense on the lease liability and amortization of the ROU asset. Variable lease costs are expensed as incurred and include maintenance costs and real estate taxes. Lease costs are reported in operating costs and expenses and totaled $45 million and $128 million, including $7 million and $22 million of variable lease costs for the three and nine months ended September 30, 2019, respectively.



Other information related to operating leases
	As of September 30, 2019
Weighted average remaining lease term (years)	6
Weighted average discount rate	3.32	%



Maturity of lease liabilities
($ in millions)	Operating leases
2019 ⁽¹⁾	$	12
2020	141
2021	111
2022	91
2023	76
2024	59
Thereafter	108
Total lease payments	$	598
Less: interest	(56		)
Present value of lease liabilities	$	542


⁽¹⁾	Excludes maturity of lease liabilities for the nine months ended September 30, 2019.

Pending accounting standards

Measurement of Credit Losses on Financial Instruments

In June 2016, the FASB issued guidance which revises the credit loss recognition criteria for certain financial assets measured at amortized cost, including reinsurance recoverables. The new guidance replaces the existing incurred loss recognition model with an expected loss recognition model. The objective of the expected credit loss model is for a reporting entity to recognize its estimate of expected credit losses for affected financial assets in a valuation allowance that when deducted from the amortized cost basis of the related financial assets results in a net carrying value at the amount expected to be collected. The reporting entity must consider all relevant information available when estimating expected credit losses, including details about past events, current conditions, and reasonable and supportable forecasts over the life of an asset. Financial assets may be evaluated individually or on a pooled basis when they share similar risk characteristics. The measurement of credit losses for available-for-sale debt securities measured at fair value is not affected except that credit losses recognized are limited to the amount by which fair value is below amortized cost and the carrying value adjustment is recognized through a valuation allowance which may change over time but once recorded cannot subsequently be reduced to an amount below zero. The guidance is effective for reporting periods beginning after December 15, 2019, and for most affected instruments must be adopted using a modified retrospective approach, with a cumulative effect adjustment recorded to beginning retained income.

The Company’s implementation activities, which remain in process, include review and validation of models, methodologies, data inputs and assumptions to be used to estimate expected credit losses. The implementation impacts relate primarily to the Company’s commercial mortgage loans, bank loans and reinsurance recoverables and will depend on economic conditions and judgments at the date of adoption as well as the size and composition of the loan portfolios and reinsurance balances. Based on

current economic conditions and the balances at the reporting date, the Company anticipates application of the current expected credit loss requirements will result in total valuation allowances for credit losses of between $260 million and $330 million, pre-tax, as of the date of adoption. After consideration of existing valuation allowances maintained prior to adopting the new guidance, the Company would anticipate recognizing a cumulative effect decrease in retained income of between $75 million and $125 million, after-tax, to adjust existing valuation allowances to the basis in the new requirements.

Changes to the Disclosure Requirements for Defined Benefit Plans

In August 2018, the FASB issued amendments to modify certain disclosure requirements for defined benefit plans. Disclosure additions relate to the weighted-average interest crediting rates for cash balance plans and other plans with interest crediting rates and explanations for significant gains and losses related to changes in the benefit obligation during the reporting period. Disclosures to be removed include those that identify amounts that are expected to be reclassified out of AOCI and into the income statement in the coming year and the anticipated impact of a one-percentage point change in assumed health care cost trend rate on service and interest cost and on the accumulated benefit obligation. The amendments are effective for annual reporting periods beginning after December 15, 2020. The impacts of adoption are to the Company’s disclosures only.

Accounting for Long-Duration Insurance Contracts

In August 2018, the FASB issued guidance revising the accounting for certain long-duration insurance contracts. The new guidance introduces material changes to the measurement of the Company’s reserves for traditional life, life-contingent immediate annuities and certain voluntary accident and health insurance products.

Under the new guidance, measurement assumptions, including those for mortality, morbidity and policy terminations, will be required to be reviewed and updated at least annually. The effect of updating measurement assumptions other than the discount rate are required to be measured on a retrospective basis and reported in net income. In addition, reserves under the new guidance are required to be discounted using an upper-medium grade fixed income instrument yield required to be updated through OCI at each reporting date. Current GAAP requires reserves to utilize assumptions set at policy issuance unless updated current assumptions indicate that recorded reserves are deficient.

The new guidance also requires deferred policy acquisition costs (“DAC”) and other capitalized balances currently amortized in proportion to premiums or gross profits to be amortized on a constant level basis over the expected term for all long-duration insurance contracts. DAC will not be subject to loss recognition testing but will be reduced when actual lapse experience exceeds expected experience. The new guidance will no longer require

adjustments to DAC and deferred sales inducement costs (“DSI”) related to unrealized gains and losses on investment securities supporting the related business.

All market risk benefit product features will be measured at fair value with changes in fair value recorded in net income with the exception of changes in the fair value attributable to changes in the reporting entity’s own credit risk, which are required to be recognized in OCI. Substantially all of the Company’s market risk benefits are reinsured and therefore these impacts are not expected to be material to the Company.

The new guidance is expected to be included in the comparable financial statements issued in reporting periods beginning after December 15, 2021, thereby requiring restatement of prior periods presented. Early adoption is permitted. The new guidance will be applied to affected contracts and DAC on the basis of existing carrying amounts at the earliest period presented or retrospectively using actual historical experience as of contract inception. The new guidance for market risk benefits is required to be adopted retrospectively. In October 2019, the FASB affirmed its decision to delay the effective date of the new guidance by one year to reporting periods beginning after December 15, 2021.

The Company is evaluating the anticipated impacts of applying the new guidance to both retained income and AOCI. The requirements of the new guidance represent a material change from existing GAAP, however, the underlying economics of the business and related cash flows are unchanged. The Company is evaluating the specific impacts of adopting the new guidance and anticipates the financial statement impact of adopting the new guidance to be material, largely attributed to the impact of transitioning to a discount rate based on an upper-medium grade fixed income investment yield and updates to mortality assumptions. The Company expects the most significant impacts will occur in the run-off annuity segment. The revised accounting for DAC will be applied prospectively using the new model and any DAC effects existing in AOCI as a result of applying existing GAAP at the date of adoption will be reversed.

Change in accounting principle

The Company changed its accounting principle for recognizing actuarial gains and losses and expected return on plan assets for its pension and other postretirement plans to a more preferable policy under U.S. GAAP. Under the new principle, remeasurement of projected benefit obligation and plan assets are immediately recognized in earnings and are referred to as pension and other postretirement remeasurement gains and losses on the Condensed Consolidated Statements of Operations. Previously, actuarial gains and losses and differences between the expected and actual returns on plan assets were recognized as a component of AOCI and were subject to amortization into earnings in future periods. This change has been applied on a retrospective basis. The Company’s policy

is to remeasure its pension and postretirement plans on a quarterly basis.

Differences between expected and actual returns and changes in assumptions affect our pension and other postretirement obligations, plan assets and expenses. The primary factors contributing to pension and other postretirement remeasurement gains and losses are 1) changes in the discount rate used to value pension and postretirement obligations as of the measurement date, 2) differences between the expected and the actual return on plan assets, 3) changes in demographic assumptions, including mortality, and 4) participant experience different from demographic assumptions.

The Company also changed its policy for recognizing expected returns on plan assets by eliminating the permitted accounting practice allowing the five-year smoothing of equity returns and moving to an unadjusted fair value method.

The Company believes that immediately recognizing remeasurement of projected benefit

obligation and plan assets in earnings is preferable as it provides greater transparency of the Company’s economic obligations in accounting results and better aligns with fair value accounting principles by recognizing the effects of economic and interest rate changes on pension and other postretirement plan assets and liabilities in the year in which the gains and losses are incurred. These changes have been applied on a retrospective basis and as of January 1, 2018 resulted in a cumulative effect decrease to retained income of $1.58 billion, with a corresponding offset to AOCI and had no impact on total shareholders’ equity.

Pension and other postretirement service cost, interest cost, expected return on plan assets and amortization of prior service credits are allocated to the Company’s reportable segments. The pension and other postretirement remeasurement gains and losses are now reported in the Corporate and Other segment.

The impacts of the adjustments on the financial statements are summarized in the following tables.



Condensed Consolidated Statements of Operations (unaudited)
	Previous accounting principle		Impact of change ⁽¹⁾			As reported
($ in millions, except per share data)	Three months ended September 30, 2019
Property and casualty insurance claims and claims expense	$	6,080	$	(29	)	$	6,051
Operating costs and expenses	1,433		(19		)	1,414
Pension and other postretirement remeasurement gains and losses	—		225			225
Restructuring and related charges	—		—			—
Total costs and expenses	9,732		177			9,909
Income from operations before income tax expense	1,337		(177		)	1,160
Income tax expense	266		(37		)	229
Net income	1,071		(140		)	931
Net income applicable to common shareholders	$	1,029	$	(140	)	$	889

Earnings per common share:
Net income applicable to common shareholders per common share - Basic	$	3.14	$	(0.43	)	$	2.71
Net income applicable to common shareholders per common share - Diluted	$	3.09	$	(0.42	)	$	2.67

	Nine months ended September 30, 2019
Property and casualty insurance claims and claims expense	$	18,285	$	(58	)	$	18,227
Operating costs and expenses	4,222		(48		)	4,174
Pension and other postretirement remeasurement gains and losses	—		365			365
Restructuring and related charges	27		—			27
Total costs and expenses	29,089		259			29,348
Income from operations before income tax expense	4,117		(259		)	3,858
Income tax expense	839		(55		)	784
Net income	3,278		(204		)	3,074
Net income applicable to common shareholders	$	3,175	$	(204	)	$	2,971

Earnings per common share:
Net income applicable to common shareholders per common share - Basic	$	9.60	$	(0.62	)	$	8.98
Net income applicable to common shareholders per common share - Diluted	$	9.46	$	(0.61	)	$	8.85

⁽¹⁾ The Company merged two of its pension plans, which had no impact on our financial statements as we remeasure pension plan assets and projected benefit obligations immediately in earnings on a quarterly basis. However, the plan merger increased the impact of change by $12 million and $18 million for the third quarter and first nine months of 2019, respectively, reflecting the shorter amortization period for losses deferred in AOCI from one of the merged plans that was required as part of the merger.



Condensed Consolidated Statements of Operations (unaudited)
	Previously reported		Impact of change			As adjusted
($ in millions, except per share data)	Three months ended September 30, 2018
Property and casualty insurance claims and claims expense	$	5,817	$	(12	)	$	5,805
Operating costs and expenses	1,510		(85		)	1,425
Pension and other postretirement remeasurement gains and losses	—		(39		)	(39		)
Restructuring and related charges	16		(3		)	13
Total costs and expenses	9,427		(139		)	9,288
Income from operations before income tax expense	1,039		139			1,178
Income tax expense	169		30			199
Net income	870		109			979
Net income applicable to common shareholders	$	833	$	109		$	942

Earnings per common share:
Net income applicable to common shareholders per common share - Basic	$	2.41	$	0.31		$	2.72
Net income applicable to common shareholders per common share - Diluted	$	2.37	$	0.31		$	2.68

	Nine months ended September 30, 2018
Property and casualty insurance claims and claims expense	$	16,758	$	(47	)	$	16,711
Operating costs and expenses	4,227		(141		)	4,086
Pension and other postretirement remeasurement gains and losses	—		(32		)	(32		)
Restructuring and related charges	65		(10		)	55
Total costs and expenses	27,230		(230		)	27,000
Income from operations before income tax expense	3,108		230			3,338
Income tax expense	587		49			636
Net income	2,521		181			2,702
Net income applicable to common shareholders	$	2,416	$	181		$	2,597

Earnings per common share:
Net income applicable to common shareholders per common share - Basic	$	6.91	$	0.52		$	7.43
Net income applicable to common shareholders per common share - Diluted	$	6.80	$	0.51		$	7.31



Condensed Consolidated Statements of Comprehensive Income (unaudited)
	Previous accounting principle			Impact of change			As reported
($ in millions)	Three months ended September 30, 2019
Net income	$	1,071		$	(140	)	$	931
Other comprehensive income (loss), after-tax
Changes in:
Unrealized net capital gains and losses	369			—			369
Unrealized foreign currency translation adjustments	(12		)	2			(10		)
Unrecognized pension and other postretirement benefit cost⁽¹⁾	20			(32		)	(12		)
Other comprehensive income, after-tax	377			(30		)	347
Comprehensive income	$	1,448		$	(170	)	$	1,278

	Nine months ended September 30, 2019
Net income	$	3,278		$	(204	)	$	3,074
Other comprehensive income (loss), after-tax
Changes in:
Unrealized net capital gains and losses	2,025			—			2,025
Unrealized foreign currency translation adjustments	2			(3		)	(1		)
Unrecognized pension and other postretirement benefit cost⁽¹⁾	155			(190		)	(35		)
Other comprehensive income, after-tax	2,182			(193		)	1,989
Comprehensive income	$	5,460		$	(397	)	$	5,063

⁽¹⁾ Financial statement line item has been updated to “Unamortized pension and other postretirement prior service credit”.



Condensed Consolidated Statements of Comprehensive Income (unaudited)
	Previously reported			Impact of change			As adjusted
($ in millions)	Three months ended September 30, 2018
Net income	$	870		$	109		$	979
Other comprehensive income (loss), after-tax
Changes in:
Unrealized net capital gains and losses	(70		)	—			(70		)
Unrealized foreign currency translation adjustments	(14		)	—			(14		)
Unrecognized pension and other postretirement benefit cost	68			(83		)	(15		)
Other comprehensive loss, after-tax	(16		)	(83		)	(99		)
Comprehensive income	$	854		$	26		$	880

	Nine months ended September 30, 2018
Net income	$	2,521		$	181		$	2,702
Other comprehensive income (loss), after-tax
Changes in:
Unrealized net capital gains and losses	(768		)	—			(768		)
Unrealized foreign currency translation adjustments	(25		)	3			(22		)
Unrecognized pension and other postretirement benefit cost	113			(158		)	(45		)
Other comprehensive loss, after-tax	(680		)	(155		)	(835		)
Comprehensive income	$	1,841		$	26		$	1,867



Condensed Consolidated Statements of Financial Position (unaudited)
	Previous accounting principle			Impact of change			As reported
($ in millions)	September 30, 2019
Deferred income taxes	$	1,185		$	(106	)	$	1,079
Other liabilities and accrued expenses	9,226			503			9,729
Total liabilities	94,536			397			94,933
Retained income	48,406			(1,879		)	46,527
Unrealized foreign currency translation adjustments	(62		)	12			(50		)
Unrecognized pension and other postretirement benefit cost	(1,336		)	1,470			134
Total AOCI	625			1,482			2,107
Total shareholders’ equity	$	26,537		$	(397	)	$	26,140

	Previously reported			Impact of change			As adjusted
($ in millions)	December 31, 2018
Retained income	$	45,708		$	(1,675	)	$	44,033
Unrealized foreign currency translation adjustments	(64		)	15			(49		)
Unrecognized pension and other postretirement benefit cost	(1,491		)	1,660			169
Total AOCI	$	(1,557	)	$	1,675		$	118



Condensed Consolidated Statements of Shareholders’ Equity (unaudited)
	Previous accounting principle			Impact of change			As reported
($ in millions)	Three months ended September 30, 2019
Retained income
Balance, beginning of period	$	47,542		$	(1,739	)	$	45,803
Cumulative effect of change in accounting principle	—			—			—
Net income	1,071			(140		)	931
Dividends on common stock	(165		)	—			(165		)
Dividends on preferred stock	(42		)	—			(42		)
Balance, end of period	48,406			(1,879		)	46,527

Accumulated other comprehensive income (loss)
Balance, beginning of period	248			1,512			1,760
Cumulative effect of change in accounting principle	—			—			—
Change in unrealized net capital gains and losses	369			—			369
Change in unrealized foreign currency translation adjustments	(12		)	2			(10		)
Change in unrecognized pension and other postretirement benefit cost ⁽¹⁾	20			(32		)	(12		)
Balance, end of period	625			1,482			2,107
Total shareholders’ equity	$	26,537		$	(397	)	$	26,140

	Nine months ended September 30, 2019
Retained income
Balance, beginning of period	$	45,708		$	(1,675	)	$	44,033
Cumulative effect of change in accounting principle	21			—			21
Net income	3,278			(204		)	3,074
Dividends on common stock	(498		)	—			(498		)
Dividends on preferred stock	(103		)	—			(103		)
Balance, end of period	48,406			(1,879		)	46,527

Accumulated other comprehensive income (loss)
Balance, beginning of period	(1,557		)	1,675			118
Cumulative effect of change in accounting principle	—			—			—
Change in unrealized net capital gains and losses	2,025			—			2,025
Change in unrealized foreign currency translation adjustments	2			(3		)	(1		)
Change in unrecognized pension and other postretirement benefit cost ⁽¹⁾	155			(190		)	(35		)
Balance, end of period	625			1,482			2,107
Total shareholders’ equity	$	26,537		$	(397	)	$	26,140

⁽¹⁾ Financial statement line item has been updated to “Change in unamortized pension and other postretirement prior service credit”.



Condensed Consolidated Statements of Shareholders’ Equity (unaudited)
	Previously reported			Impact of change			As adjusted
($ in millions)	Three months ended September 30, 2018
Retained income
Balance, beginning of period	$	45,508		$	(1,511	)	$	43,997
Cumulative effect of change in accounting principle	—			—			—
Net income	870			109			979
Dividends on common stock	(163		)	—			(163		)
Dividends on preferred stock	(37		)	—			(37		)
Balance, end of period	46,178			(1,402		)	44,776

Accumulated other comprehensive income (loss)
Balance, beginning of period	(1,268		)	1,511			243
Cumulative effect of change in accounting principle	—			—			—
Change in unrealized net capital gains and losses	(70		)	—			(70		)
Change in unrealized foreign currency translation adjustments	(14		)	—			(14		)
Change in unrecognized pension and other postretirement benefit cost	68			(83		)	(15		)
Balance, end of period	(1,284		)	1,428			144
Total shareholders’ equity	$	23,633		$	26		$	23,659

	Nine months ended September 30, 2018
Retained income
Balance, beginning of period	$	43,162		$	(1,583	)	$	41,579
Cumulative effect of change in accounting principle	1,088			—			1,088
Net income	2,521			181			2,702
Dividends on common stock	(488		)	—			(488		)
Dividends on preferred stock	(105		)	—			(105		)
Balance, end of period	46,178			(1,402		)	44,776

Accumulated other comprehensive income (loss)
Balance, beginning of period	306			1,583			1,889
Cumulative effect of change in accounting principle	(910		)	—			(910		)
Change in unrealized net capital gains and losses	(768		)	—			(768		)
Change in unrealized foreign currency translation adjustments	(25		)	3			(22		)
Change in unrecognized pension and other postretirement benefit cost	113			(158		)	(45		)
Balance, end of period	(1,284		)	1,428			144
Total shareholders’ equity	$	23,633		$	26		$	23,659



Condensed Consolidated Statements of Cash Flows (unaudited)
	Previous accounting principle			Impact of change			As reported
($ in millions)	Nine months ended September 30, 2019
Cash flows from operating activities
Net income	$	3,278		$	(204	)	$	3,074
Adjustments to reconcile net income to net cash provided by operating activities:
Pension and other postretirement remeasurement gains and losses	—			365			365
Income taxes	309			(55		)	254
Other operating assets and liabilities	(75		)	(106		)	(181		)
Net cash provided by operating activities	$	3,895		$	—		$	3,895

	Previously reported			Impact of change			As adjusted
($ in millions)	Nine months ended September 30, 2018
Cash flows from operating activities
Net income	$	2,521		$	181		$	2,702
Adjustments to reconcile net income to net cash provided by operating activities:
Pension and other postretirement remeasurement gains and losses	—			(32		)	(32		)
Income taxes	(227		)	49			(178		)
Other operating assets and liabilities	533			(198		)	335
Net cash provided by operating activities	$	3,818		$	—		$	3,818

Earnings per Common Share

9 Months Ended

Sep. 30, 2019

Earnings Per Share [Abstract]

Earnings per Common Share



Note 2	Earnings per Common Share

Basic earnings per common share is computed using the weighted average number of common shares outstanding, including vested unissued participating restricted stock units. Diluted earnings per common share is computed using the weighted average number of common and dilutive potential common shares outstanding.

For the Company, dilutive potential common shares consist of outstanding stock options and

unvested non-participating restricted stock units and contingently issuable performance stock awards. The effect of dilutive potential common shares does not include the effect of options with an anti-dilutive effect on earnings per common share because their exercise prices exceed the average market price of Allstate common shares during the period or for which the unrecognized compensation cost would have an anti-dilutive effect.



Computation of basic and diluted earnings per common share
(In millions, except per share data)	Three months ended September 30,				Nine months ended September 30,
(In millions, except per share data)	2019		2018		2019		2018
Numerator:
Net income	$	931	$	979	$	3,074	$	2,702
Less: Preferred stock dividends	42		37		103		105
Net income applicable to common shareholders	$	889	$	942	$	2,971	$	2,597

Denominator:
Weighted average common shares outstanding	327.7		346.0		330.8		349.7
Effect of dilutive potential common shares:
Stock options	3.4		3.8		3.2		3.8
Restricted stock units (non-participating) and performance stock awards	1.9		1.9		1.7		1.9
Weighted average common and dilutive potential common shares outstanding	333.0		351.7		335.7		355.4

Earnings per common share - Basic	$	2.71	$	2.72	$	8.98	$	7.43
Earnings per common share - Diluted	$	2.67	$	2.68	$	8.85	$	7.31

Anti-dilutive options excluded from diluted earnings per common share	1.8		2.3		3.7		1.9

Acquisitions

9 Months Ended

Sep. 30, 2019

Business Combinations [Abstract]

Acquisitions



Note 3	Acquisitions

iCracked On February 12, 2019, the Company acquired iCracked Inc. (“iCracked”) which offers on-site, on-demand repair services for smartphones and tablets in North America, supporting Allstate Protection Plans' (formerly known as SquareTrade) operations. In conjunction with the iCracked acquisition, the Company recorded goodwill of $17 million.

PlumChoice On November 30, 2018, the Company acquired PlumChoice, Inc. (“PlumChoice”) for $30 million in cash to provide technical support services to Allstate Protection Plans' customers and small businesses. In conjunction with the PlumChoice acquisition, the Company recorded goodwill of $23 million.

Allstate Identity Protection On October 5, 2018, the Company acquired InfoArmor, Inc. (“InfoArmor”), a leading provider of identity protection in the employee benefits market, for $525 million in cash. InfoArmor primarily offers identity protection to employees and their family members through voluntary benefit programs at over 1,400 firms, including more than 100 of the Fortune 500 companies. Starting in the third quarter of 2019, the Company is reporting InfoArmor using the name Allstate Identity Protection.

In connection with the InfoArmor acquisition, the Company recorded goodwill of $318 million and intangible assets of $257 million. The intangible assets include $225 million and $32 million related to acquired customer relationships and technology, respectively.

Reportable Segments

9 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

Reportable Segments



Note 4	Reportable Segments

Change in accounting principle

As discussed in Note 1, the Company changed its accounting principle for recognizing actuarial gains and losses and expected return on plan assets for its pension and other postretirement plans to a more preferable policy under U.S. GAAP. Under the new principle, remeasurement of projected benefit obligation and plan assets are immediately recognized through earnings and are referred to as pension and other postretirement remeasurement gains and losses on the Condensed Consolidated Statements of Operations. This change has been applied on a retrospective basis. See Note 1 for further information regarding the impact of the change in accounting principle on the condensed consolidated financial statements.

Measuring segment profit or loss

The measure of segment profit or loss used in evaluating performance is underwriting income for the Allstate Protection and Discontinued Lines and Coverages segments and adjusted net income for the Service Businesses, Allstate Life, Allstate Benefits, Allstate Annuities, and Corporate and Other segments. A reconciliation of these measures to net income applicable to common shareholders is provided below.

Underwriting income is calculated as premiums earned and other revenue, less claims and claims expenses (“losses”), amortization of DAC, operating costs and expenses, amortization of purchased intangibles and restructuring and related charges as determined using GAAP.

Adjusted net income is net income applicable to common shareholders, excluding:

• Realized capital gains and losses, after-tax, except for periodic settlements and accruals on non-hedge derivative instruments, which are reported with realized capital gains and losses but included in adjusted net income

• Pension and other postretirement remeasurement gains and losses, after-tax

• Valuation changes on embedded derivatives not hedged, after-tax

• Amortization of DAC and DSI, to the extent they resulted from the recognition of certain realized capital gains and losses or valuation changes on embedded derivatives not hedged, after-tax

• Business combination expenses and the amortization or impairment of purchased intangibles, after-tax

• Gain (loss) on disposition of operations, after-tax

• Adjustments for other significant non-recurring, infrequent or unusual items, when (a) the nature of the charge or gain is such that it is reasonably unlikely to recur within two years, or (b) there has been no similar charge or gain within the prior two years



Reportable segments revenue information
($ in millions)	Three months ended September 30,						Nine months ended September 30,
	2019			2018			2019			2018
Property-Liability
Insurance premiums
Auto	$	6,080		$	5,798		$	18,045		$	17,094
Homeowners	1,997			1,891			5,890			5,603
Other personal lines	469			455			1,390			1,354
Commercial lines	236			176			645			477
Allstate Protection	8,782			8,320			25,970			24,528
Discontinued Lines and Coverages	—			—			—			—
Total Property-Liability insurance premiums	8,782			8,320			25,970			24,528
Other revenue	195			192			561			550
Net investment income	448			410			1,210			1,100
Realized capital gains and losses	163			126			916			16
Total Property-Liability	9,588			9,048			28,657			26,194

Service Businesses
Consumer product protection plans	163			125			461			369
Roadside assistance	57			66			183			198
Finance and insurance products	92			84			268			246
Intersegment premiums and service fees ⁽¹⁾	44			31			110			89
Other revenue	47			16			142			48
Net investment income	11			7			30			18
Realized capital gains and losses	4			—			21			(6		)
Total Service Businesses	418			329			1,215			962

Allstate Life
Traditional life insurance premiums	155			149			465			443
Accident and health insurance premiums	—			—			1			1
Interest-sensitive life insurance contract charges	176			173			535			531
Other revenue	31			30			91			84
Net investment income	128			128			380			380
Realized capital gains and losses	5			(3		)	1			(9		)
Total Allstate Life	495			477			1,473			1,430

Allstate Benefits
Traditional life insurance premiums	12			13			31			32
Accident and health insurance premiums	250			246			746			739
Interest-sensitive life insurance contract charges	29			26			86			83
Net investment income	21			19			61			57
Realized capital gains and losses	2			2			8			—
Total Allstate Benefits	314			306			932			911

Allstate Annuities
Fixed annuities contract charges	3			5			10			11
Net investment income	251			260			737			843
Realized capital gains and losses	20			51			224			28
Total Allstate Annuities	274			316			971			882

Corporate and Other
Net investment income	21			20			52			56
Realized capital gains and losses	3			—			13			(12		)
Total Corporate and Other	24			20			65			44

Intersegment eliminations ⁽¹⁾	(44		)	(31		)	(110		)	(89		)
Consolidated revenues	$	11,069		$	10,465		$	33,203		$	30,334


⁽¹⁾	Intersegment insurance premiums and service fees are primarily related to Arity and Allstate Roadside Services and are eliminated in the condensed consolidated financial statements.



Reportable segments financial performance
	Three months ended September 30,						Nine months ended September 30,
($ in millions)	2019			2018			2019			2018
Property-Liability
Allstate Protection	$	836		$	587		$	1,909		$	2,053
Discontinued Lines and Coverages	(99		)	(80		)	(105		)	(86		)
Total underwriting income	737			507			1,804			1,967
Net investment income	448			410			1,210			1,100
Income tax expense on operations	(236		)	(185		)	(617		)	(628		)
Realized capital gains and losses, after-tax	127			103			724			16
Tax Legislation expense	—			(3		)	—			(3		)
Property-Liability net income applicable to common shareholders	1,076			832			3,121			2,452

Service Businesses
Adjusted net income	8			1			35			—
Realized capital gains and losses, after-tax	4			(1		)	17			(5		)
Amortization of purchased intangibles, after-tax	(25		)	(16		)	(74		)	(48		)
Impairment of purchased intangibles, after-tax	—			—			(43		)	—
Tax Legislation expense	—			(4		)	—			(4		)
Service Businesses net loss applicable to common shareholders	(13		)	(20		)	(65		)	(57		)

Allstate Life
Adjusted net income	44			75			185			226
Realized capital gains and losses, after-tax	4			(3		)	—			(7		)
Valuation changes on embedded derivatives not hedged, after-tax	(9		)	—			(9		)	—
DAC and DSI amortization related to realized capital gains and losses, after-tax	1			(1		)	(2		)	(6		)
Tax Legislation expense	—			(16		)	—			(16		)
Allstate Life net income applicable to common shareholders	40			55			174			197

Allstate Benefits
Adjusted net income	31			33			99			98
Realized capital gains and losses, after-tax	2			2			7			—
Allstate Benefits net income applicable to common shareholders	33			35			106			98

Allstate Annuities
Adjusted net income	16			20			43			99
Realized capital gains and losses, after-tax	16			40			177			22
Valuation changes on embedded derivatives not hedged, after-tax	(1		)	1			(6		)	5
Gain on disposition of operations, after-tax	—			1			2			3
Tax Legislation benefit	—			69			—			69
Allstate Annuities net income applicable to common shareholders	31			131			216			198

Corporate and Other
Adjusted net loss	(101		)	(106		)	(302		)	(291		)
Realized capital gains and losses, after-tax	2			—			10			(10		)
Pension and other postretirement remeasurement gains and losses, after-tax	(179		)	30			(289		)	25
Tax Legislation expense	—			(15		)	—			(15		)
Consolidated and Other net loss applicable to common shareholders	(278		)	(91		)	(581		)	(291		)

Consolidated net income applicable to common shareholders	$	889		$	942		$	2,971		$	2,597

Investments

9 Months Ended

Sep. 30, 2019

Investments [Abstract]

Investments



Note 5	Investments



Amortized cost, gross unrealized gains (losses) and fair value for fixed income securities
($ in millions)	Amortized cost		Gross unrealized					Fair value
($ in millions)	Amortized cost		Gains		Losses			Fair value
September 30, 2019
U.S. government and agencies	$	3,855	$	257	$	(1	)	$	4,111
Municipal	8,227		615		(4		)	8,838
Corporate	42,013		2,075		(70		)	44,018
Foreign government	972		24		(3		)	993
Asset-backed securities (“ABS”)	818		10		(6		)	822
Residential mortgage-backed securities (“RMBS”)	301		92		(1		)	392
Commercial mortgage-backed securities (“CMBS”)	57		8		(1		)	64
Redeemable preferred stock	20		1		—			21
Total fixed income securities	$	56,263	$	3,082	$	(86	)	$	59,259

December 31, 2018
U.S. government and agencies	$	5,386	$	137	$	(6	)	$	5,517
Municipal	8,963		249		(43		)	9,169
Corporate	40,536		490		(890		)	40,136
Foreign government	739		13		(5		)	747
ABS	1,049		6		(10		)	1,045
RMBS	377		89		(2		)	464
CMBS	63		8		(1		)	70
Redeemable preferred stock	21		1		—			22
Total fixed income securities	$	57,134	$	993	$	(957	)	$	57,170



Scheduled maturities for fixed income securities
($ in millions)	As of September 30, 2019
($ in millions)	Amortized cost		Fair value
Due in one year or less	$	3,026	$	3,050
Due after one year through five years	25,251		25,913
Due after five years through ten years	17,315		18,290
Due after ten years	9,495		10,728
	55,087		57,981
ABS, RMBS and CMBS	1,176		1,278
Total	$	56,263	$	59,259

Actual maturities may differ from those scheduled as a result of calls and make-whole payments by the issuers. ABS, RMBS and CMBS are shown separately because of the potential for prepayment of principal prior to contractual maturity dates.



Net investment income
($ in millions)	Three months ended September 30,						Nine months ended September 30,
($ in millions)	2019			2018			2019			2018
Fixed income securities	$	546		$	527		$	1,627		$	1,544
Equity securities	57			35			155			130
Mortgage loans	54			52			161			163
Limited partnership interests	197			210			460			563
Short-term investments	28			19			80			50
Other	66			71			196			205
Investment income, before expense	948			914			2,679			2,655
Investment expense	(68		)	(70		)	(209		)	(201		)
Net investment income	$	880		$	844		$	2,470		$	2,454



Realized capital gains (losses) by asset type
($ in millions)	Three months ended September 30,						Nine months ended September 30,
($ in millions)	2019			2018			2019		2018
Fixed income securities	$	147		$	(30	)	$	290	$	(153	)
Equity securities	40			223			771		204
Mortgage loans	—			—			—		2
Limited partnership interests	(18		)	(23		)	75		(56		)
Derivatives	40			5			16		20
Other	(12		)	1			31		—
Realized capital gains and losses	$	197		$	176		$	1,183	$	17



Realized capital gains (losses) by transaction type
($ in millions)	Three months ended September 30,						Nine months ended September 30,
($ in millions)	2019			2018			2019			2018
Impairment write-downs	$	(14	)	$	(5	)	$	(43	)	$	(10	)
Sales	147			(22		)	359			(139		)
Valuation of equity investments ⁽¹⁾	24			198			851			149
Valuation and settlements of derivative instruments	40			5			16			17
Realized capital gains and losses	$	197		$	176		$	1,183		$	17


⁽¹⁾	Includes valuation of equity securities and certain limited partnership interests where the underlying assets are predominately public equity securities.

Sales of fixed income securities resulted in gross gains of $168 million and $21 million and gross losses of $20 million and $48 million during the three months ended September 30, 2019 and 2018, respectively.

Sales of fixed income securities resulted in gross gains of $409 million and $95 million and gross losses of $107 million and $242 million during the nine months ended September 30, 2019 and 2018, respectively.

The following table presents the net pre-tax appreciation (decline) during 2019 and 2018 of equity securities and limited partnership interests carried at fair value still held as of September 30, 2019 and September 30, 2018 recognized in net income.



Net appreciation (decline) recognized in net income
($ in millions)	Three months ended September 30,				Nine months ended September 30,
($ in millions)	2019		2018		2019		2018
Equity securities	$	107	$	234	$	736	$	321
Limited partnership interests carried at fair value	49		75		109		181
Total	$	156	$	309	$	845	$	502



OTTI losses by asset type
($ in millions)	Three months ended									Three months ended
	September 30, 2019									September 30, 2018
	Gross			Included in OCI			Net			Gross			Included in OCI			Net
Fixed income securities:
Municipal	$	(2	)	$	2		$	—		$	—		$	—		$	—
Corporate	$	—		$	—		$	—		$	—		$	—		$	—
ABS	—			—			—			—			(1		)	(1		)
RMBS	—			—			—			—			—			—
CMBS	(1		)	—			(1		)	(2		)	—			(2		)
Total fixed income securities	(3		)	2			(1		)	(2		)	(1		)	(3		)
Limited partnership interests	(1		)	—			(1		)	(2		)	—			(2		)
Other	(12		)	—			(12		)	—			—			—
OTTI losses	$	(16	)	$	2		$	(14	)	$	(4	)	$	(1	)	$	(5	)

	Nine months ended									Nine months ended
	September 30, 2019									September 30, 2018
	Gross			Included in OCI			Net			Gross			Included in OCI			Net
Fixed income securities:
Municipal	$	(2	)	$	2		$	—		$	—		$	—		$	—
Corporate	$	(5	)	$	(2	)	$	(7	)	$	—		$	—		$	—
ABS	(3		)	—			(3		)	(1		)	(1		)	(2		)
RMBS	—			(1		)	(1		)	(1		)	—			(1		)
CMBS	(3		)	2			(1		)	(2		)	(1		)	(3		)
Total fixed income securities	(13		)	1			(12		)	(4		)	(2		)	(6		)
Limited partnership interests	(4		)	—			(4		)	(3		)	—			(3		)
Other	(27		)	—			(27		)	(1		)	—			(1		)
OTTI losses	$	(44	)	$	1		$	(43	)	$	(8	)	$	(2	)	$	(10	)



OTTI losses included in AOCI at the time of impairment for fixed income securities which were not included in earnings
($ in millions)	September 30, 2019			December 31, 2018
Municipal	$	(7	)	$	(5	)
Corporate	—			(2		)
ABS	(10		)	(10		)
RMBS	(56		)	(67		)
CMBS	(3		)	(2		)
Total	$	(76	)	$	(86	)

The amounts exclude $179 million and $180 million as of September 30, 2019 and December 31, 2018, respectively, of net unrealized gains related to changes in valuation of the fixed income securities subsequent to the impairment measurement date.



Rollforward of cumulative credit losses recognized in earnings for fixed income securities held as of September 30,
($ in millions)	Three months ended September 30,						Nine months ended September 30,
($ in millions)	2019			2018			2019			2018
Beginning balance	$	(208	)	$	(206	)	$	(204	)	$	(226	)
Additional credit loss for securities previously other-than-temporarily impaired	(1		)	(3		)	(8		)	(5		)
Additional credit loss for securities not previously other-than-temporarily impaired	—			—			(4		)	(1		)
Reduction in credit loss for securities disposed or collected	14			4			21			26
Change in credit loss due to accretion of increase in cash flows	—			—			—			1
Ending balance	$	(195	)	$	(205	)	$	(195	)	$	(205	)

The Company uses its best estimate of future cash flows expected to be collected from the fixed income security, discounted at the security’s original or current

effective rate, as appropriate, to calculate a recovery value and determine whether a credit loss exists. The determination of cash flow estimates is inherently

subjective and methodologies may vary depending on facts and circumstances specific to the security. All reasonably available information relevant to the collectability of the security, including past events, current conditions, and reasonable and supportable assumptions and forecasts, are considered when developing the estimate of cash flows expected to be collected. That information generally includes, but is not limited to, the remaining payment terms of the security, prepayment speeds, foreign exchange rates, the financial condition and future earnings potential of the issue or issuer, expected defaults, expected recoveries, the value of underlying collateral, vintage, geographic concentration of underlying collateral, available reserves or escrows, current subordination levels, third-party guarantees and other credit enhancements. Other information, such as industry analyst reports and forecasts, sector credit ratings, financial condition of the bond insurer for insured fixed

income securities, and other market data relevant to the realizability of contractual cash flows, may also be considered. The estimated fair value of collateral will be used to estimate recovery value if the Company determines that the security is dependent on the liquidation of collateral for ultimate settlement. If the estimated recovery value is less than the amortized cost of the security, a credit loss exists and an OTTI for the difference between the estimated recovery value and amortized cost is recorded in earnings. The portion of the unrealized loss related to factors other than credit remains classified in AOCI. If the Company determines that the fixed income security does not have sufficient cash flow or other information to estimate a recovery value for the security, the Company may conclude that the entire decline in fair value is deemed to be credit related and the loss is recorded in earnings.



Unrealized net capital gains and losses included in AOCI
($ in millions)	Fair value		Gross unrealized					Unrealized net gains (losses)
September 30, 2019	Fair value		Gains		Losses			Unrealized net gains (losses)
Fixed income securities	$	59,259	$	3,082	$	(86	)	$	2,996
Short-term investments	5,254		—		—			—
Derivative instruments	—		—		(3		)	(3		)
Equity method of accounting (“EMA”) limited partnerships ⁽¹⁾								(3		)
Unrealized net capital gains and losses, pre-tax								2,990
Amounts recognized for:
Insurance reserves ⁽²⁾								(202		)
DAC and DSI ⁽³⁾								(221		)
Amounts recognized								(423		)
Deferred income taxes								(544		)
Unrealized net capital gains and losses, after-tax								$	2,023


⁽¹⁾	Unrealized net capital gains and losses for limited partnership interests represent the Company’s share of EMA limited partnerships’ OCI. Fair value and gross unrealized gains and losses are not applicable.


⁽²⁾	The insurance reserves adjustment represents the amount by which the reserve balance would increase if the net unrealized gains in the applicable product portfolios were realized and reinvested at lower interest rates, resulting in a premium deficiency. This adjustment primarily relates to structured settlement annuities with life contingencies (a type of immediate fixed annuities).


⁽³⁾	The DAC and DSI adjustment balance represents the amount by which the amortization of DAC and DSI would increase or decrease if the unrealized gains or losses in the respective product portfolios were realized.



Unrealized net capital gains and losses included in AOCI
($ in millions)	Fair value		Gross unrealized					Unrealized net gains (losses)
December 31, 2018	Fair value		Gains		Losses			Unrealized net gains (losses)
Fixed income securities	$	57,170	$	993	$	(957	)	$	36
Short-term investments	3,027		—		—			—
Derivative instruments	—		—		(3		)	(3		)
EMA limited partnerships								—
Unrealized net capital gains and losses, pre-tax								33
Amounts recognized for:
Insurance reserves								—
DAC and DSI								(33		)
Amounts recognized								(33		)
Deferred income taxes								(2		)
Unrealized net capital gains and losses, after-tax								$	(2	)



Change in unrealized net capital gains (losses)
($ in millions)	Nine months ended September 30, 2019
Fixed income securities	$	2,960
Derivative instruments	—
EMA limited partnerships	(3		)
Total	2,957
Amounts recognized for:
Insurance reserves	(202		)
DAC and DSI	(188		)
Amounts recognized	(390		)
Deferred income taxes	(542		)
Increase in unrealized net capital gains and losses, after-tax	$	2,025

Portfolio monitoring

The Company has a comprehensive portfolio monitoring process to identify and evaluate each fixed income security whose carrying value may be other-than-temporarily impaired.

For each fixed income security in an unrealized loss position, the Company assesses whether management with the appropriate authority has made the decision to sell or whether it is more likely than not the Company will be required to sell the security before recovery of the amortized cost basis for reasons such as liquidity, contractual or regulatory purposes. If a security meets either of these criteria, the security’s decline in fair value is considered other than temporary and is recorded in earnings.

If the Company has not made the decision to sell the fixed income security and it is not more likely than not the Company will be required to sell the fixed income security before recovery of its amortized cost basis, the Company evaluates whether it expects to receive cash flows sufficient to recover the entire amortized cost basis of the security. The Company calculates the estimated recovery value by discounting the best estimate of future cash flows at the security’s original or current effective rate, as appropriate, and compares this to the amortized cost of the security. If the Company does not expect to receive cash flows sufficient to recover the entire amortized cost basis of the fixed income security, the credit loss component of the impairment is recorded in earnings, with the

remaining amount of the unrealized loss related to other factors recognized in OCI.

The Company’s portfolio monitoring process includes a quarterly review of all securities to identify instances where the fair value of a security compared to its amortized cost is below established thresholds. The process also includes the monitoring of other impairment indicators such as ratings, ratings downgrades and payment defaults. The securities identified, in addition to other securities for which the Company may have a concern, are evaluated for potential OTTI using all reasonably available information relevant to the collectability or recovery of the security. Inherent in the Company’s evaluation of OTTI for these securities are assumptions and estimates about the financial condition and future earnings potential of the issue or issuer. Some of the factors that may be considered in evaluating whether a decline in fair value is other than temporary are: 1) the financial condition, near-term and long-term prospects of the issue or issuer, including relevant industry specific market conditions and trends, geographic location and implications of rating agency actions and offering prices; 2) the specific reasons that a security is in an unrealized loss position, including overall market conditions which could affect liquidity; and 3) the length of time and extent to which the fair value has been less than amortized cost.



Gross unrealized losses and fair value by type and length of time held in a continuous unrealized loss position
($ in millions)	Less than 12 months						12 months or more						Total unrealized losses
($ in millions)	Number of issues	Fair value		Unrealized losses			Number of issues	Fair value		Unrealized losses			Total unrealized losses
September 30, 2019
Fixed income securities
U.S. government and agencies	8	$	165	$	(1	)	17	$	48	$	—		$	(1	)
Municipal	204	373		(2		)	1	14		(2		)	(4		)
Corporate	206	1,671		(31		)	96	973		(39		)	(70		)
Foreign government	32	205		(2		)	6	103		(1		)	(3		)
ABS	33	150		(2		)	20	122		(4		)	(6		)
RMBS	26	15		—			145	20		(1		)	(1		)
CMBS	1	5		—			1	2		(1		)	(1		)
Redeemable preferred stock	—	—		—			—	—		—			—
Total fixed income securities	510	$	2,584	$	(38	)	286	$	1,282	$	(48	)	$	(86	)
Investment grade fixed income securities	426	$	2,088	$	(13	)	237	$	991	$	(23	)	$	(36	)
Below investment grade fixed income securities	84	496		(25		)	49	291		(25		)	(50		)
Total fixed income securities	510	$	2,584	$	(38	)	286	$	1,282	$	(48	)	$	(86	)

December 31, 2018
Fixed income securities
U.S. government and agencies	11	$	55	$	—		38	$	364	$	(6	)	$	(6	)
Municipal	943	1,633		(10		)	1,147	1,554		(33		)	(43		)
Corporate	1,735	19,243		(543		)	645	8,374		(347		)	(890		)
Foreign government	7	20		(1		)	27	412		(4		)	(5		)
ABS	64	454		(5		)	28	161		(5		)	(10		)
RMBS	166	30		—			195	52		(2		)	(2		)
CMBS	3	7		—			2	—		(1		)	(1		)
Redeemable preferred stock	1	—		—			—	—		—			—
Total fixed income securities	2,930	$	21,442	$	(559	)	2,082	$	10,917	$	(398	)	$	(957	)
Investment grade fixed income securities	2,348	$	17,485	$	(331	)	2,021	$	10,626	$	(360	)	$	(691	)
Below investment grade fixed income securities	582	3,957		(228		)	61	291		(38		)	(266		)
Total fixed income securities	2,930	$	21,442	$	(559	)	2,082	$	10,917	$	(398	)	$	(957	)



Gross unrealized losses by unrealized loss position and credit quality as of September 30, 2019
($ in millions)	Investment grade			Below investment grade			Total
Fixed income securities with unrealized loss position less than 20% of amortized cost ^{(1) (2)}	$	(23	)	$	(46	)	$	(69	)
Fixed income securities with unrealized loss position greater than or equal to 20% of amortized cost^{(3) (4)}	(13		)	(4		)	(17		)
Total unrealized losses	$	(36	)	$	(50	)	$	(86	)


⁽¹⁾	Below investment grade fixed income securities include $25 million that have been in an unrealized loss position for less than twelve months.


⁽²⁾	Related to securities with an unrealized loss position less than 20% of amortized cost, the degree of which suggests that these securities do not pose a high risk of being other-than-temporarily impaired.


⁽³⁾	Below investment grade fixed income securities include zero that have been in an unrealized loss position for a period of twelve or more consecutive months.


⁽⁴⁾	Evaluated based on factors such as discounted cash flows and the financial condition and near-term and long-term prospects of the issue or issuer and were determined to have adequate resources to fulfill contractual obligations.

Investment grade is defined as a security having a rating of Aaa, Aa, A or Baa from Moody’s, a rating of AAA, AA, A or BBB from S&P Global Ratings (“S&P”), a comparable rating from another nationally recognized rating agency, or a comparable internal rating if an externally provided rating is not available. Market prices for certain securities may have credit spreads

which imply higher or lower credit quality than the current third-party rating. Unrealized losses on investment grade securities are principally related to an increase in market yields which may include increased risk-free interest rates and/or wider credit spreads since the time of initial purchase. The

unrealized losses are expected to reverse as the securities approach maturity.

ABS, RMBS and CMBS in an unrealized loss position were evaluated based on actual and projected collateral losses relative to the securities’ positions in the respective securitization trusts, security specific expectations of cash flows, and credit ratings. This evaluation also takes into consideration credit enhancement, measured in terms of (i) subordination from other classes of securities in the trust that are contractually obligated to absorb losses before the class of security the Company owns, and (ii) the expected impact of other structural features embedded in the securitization trust beneficial to the class of securities the Company owns, such as overcollateralization and excess spread. Municipal bonds in an unrealized loss position were evaluated based on the underlying credit quality of the primary obligor, obligation type and quality of the underlying assets.

As of September 30, 2019, the Company has not made the decision to sell and it is not more likely than not the Company will be required to sell fixed income securities with unrealized losses before recovery of the amortized cost basis.

Limited partnerships

Investments in limited partnership interests include interests in private equity funds, real estate funds and other funds. As of September 30, 2019 and December 31, 2018, the carrying value of EMA limited partnerships totaled $6.23 billion and $5.73 billion, respectively, and limited partnerships carried at fair value totaled $1.76 billion and $1.78 billion, respectively.

Mortgage loans

Mortgage loans are evaluated for impairment on a specific loan basis through a quarterly credit

monitoring process and review of key credit quality indicators. Mortgage loans are considered impaired when it is probable that the Company will not collect the contractual principal and interest. Valuation allowances are established for impaired loans to reduce the carrying value to the fair value of the collateral less costs to sell or the present value of the loan’s expected future repayment cash flows discounted at the loan’s original effective interest rate. Impaired mortgage loans may not have a valuation allowance when the fair value of the collateral less costs to sell is higher than the carrying value. Valuation allowances are adjusted for subsequent changes in the fair value of the collateral less costs to sell or present value of the loan’s expected future repayment cash flows. Mortgage loans are charged off against their corresponding valuation allowances when there is no reasonable expectation of recovery. The impairment evaluation is non-statistical in respect to the aggregate portfolio but considers facts and circumstances attributable to each loan. It is not considered probable that additional impairment losses, beyond those identified on a specific loan basis, have been incurred as of September 30, 2019.

Accrual of income is suspended for mortgage loans that are in default or when full and timely collection of principal and interest payments is not probable. Cash receipts on mortgage loans on non-accrual status are generally recorded as a reduction of carrying value.

Debt service coverage ratio is considered a key credit quality indicator when mortgage loans are evaluated for impairment. Debt service coverage ratio represents the amount of estimated cash flows from the property available to the borrower to meet principal and interest payment obligations. Debt service coverage ratio estimates are updated annually or more frequently if conditions are warranted based on the Company’s credit monitoring process.



Carrying value of non-impaired mortgage loans summarized by debt service coverage ratio distribution
($ in millions)	September 30, 2019						December 31, 2018
Debt service coverage ratio distribution	Fixed rate mortgage loans		Variable rate mortgage loans		Total		Fixed rate mortgage loans		Variable rate mortgage loans		Total
Below 1.0	$	20	$	32	$	52	$	6	$	31	$	37
1.0 - 1.25	247		—		247		273		—		273
1.26 - 1.50	1,347		18		1,365		1,192		—		1,192
Above 1.50	2,941		83		3,024		3,063		101		3,164
Total non-impaired mortgage loans	$	4,555	$	133	$	4,688	$	4,534	$	132	$	4,666

Mortgage loans with a debt service coverage ratio below 1.0 that are not considered impaired primarily relate to instances where the borrower has the financial capacity to fund the revenue shortfalls from the properties for the foreseeable term, the decrease

in cash flows from the properties is considered temporary, or there are other risk mitigating circumstances such as additional collateral, escrow balances or borrower guarantees.



Net carrying value of impaired mortgage loans
($ in millions)	September 30, 2019		December 31, 2018
Impaired mortgage loans with a valuation allowance	$	6	$	4
Impaired mortgage loans without a valuation allowance	—		—
Total impaired mortgage loans	$	6	$	4
Valuation allowance on impaired mortgage loans	$	3	$	3

The valuation allowance on impaired loans had no activity for the three months and nine months ended September 30, 2019 and 2018. The average balance of impaired loans was $4 million for both the nine months ended September 30, 2019 and 2018.

Payments on all mortgage loans were current as of September 30, 2019 and December 31, 2018.

Short-term investments

Short-term investments, including commercial paper, money market funds, U.S. Treasury bills and other short-term investments, are carried at fair value. As of September 30, 2019 and December 31, 2018, the fair value of short-term investments totaled $5.25 billion and $3.03 billion, respectively.

Other investments

Other investments primarily consist of bank loans, policy loans, real estate, agent loans and derivatives. Bank loans are primarily senior secured corporate loans and are carried at amortized cost. Policy loans are carried at unpaid principal balances. Real estate is carried at cost less accumulated depreciation. Agent loans are loans issued to exclusive Allstate agents and are carried at unpaid principal balances, net of valuation allowances and unamortized deferred fees or costs. Derivatives are carried at fair value.



Other investments by asset type
($ in millions)	September 30, 2019		December 31, 2018
Bank loans	$	1,223	$	1,350
Policy loans	892		891
Real estate	917		791
Agent loans	663		620
Derivatives and other	209		200
Total	$	3,904	$	3,852

Fair Value of Assets and Liabilities

9 Months Ended

Sep. 30, 2019

Fair Value Disclosures [Abstract]

Fair Value of Assets and Liabilities



Note 6	Fair Value of Assets and Liabilities

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The hierarchy for inputs used in determining fair value maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. Assets and liabilities recorded on the Condensed Consolidated Statements of Financial Position at fair value are categorized in the fair value hierarchy based on the observability of inputs to the valuation techniques as follows:

Level 1: Assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that the Company can access.

Level 2: Assets and liabilities whose values are based on the following:


(a)	Quoted prices for similar assets or liabilities in active markets;


(b)	Quoted prices for identical or similar assets or liabilities in markets that are not active; or


(c)	Valuation models whose inputs are observable, directly or indirectly, for substantially the full term of the asset or liability.

Level 3: Assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Unobservable inputs reflect the Company’s estimates of the assumptions that market participants would use in valuing the assets and liabilities.

The availability of observable inputs varies by instrument. In situations where fair value is based on internally developed pricing models or inputs that are unobservable in the market, the determination of fair value requires more judgment. The degree of judgment exercised by the Company in determining fair value is typically greatest for instruments categorized in Level 3. In many instances, valuation inputs used to measure fair value fall into different levels of the fair value hierarchy. The category level in the fair value hierarchy is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company uses prices and inputs that are current as of the measurement date, including during periods of market disruption. In periods of market disruption, the ability to observe prices and inputs may be reduced for many instruments.

The Company is responsible for the determination of fair value and the supporting assumptions and methodologies. The Company gains assurance that assets and liabilities are appropriately valued through the execution of various processes and controls designed to ensure the overall reasonableness and consistent application of valuation methodologies, including inputs and assumptions, and compliance

with accounting standards. For fair values received from third parties or internally estimated, the Company’s processes and controls are designed to ensure that the valuation methodologies are appropriate and consistently applied, the inputs and assumptions are reasonable and consistent with the objective of determining fair value, and the fair values are accurately recorded. For example, on a continuing basis, the Company assesses the reasonableness of individual fair values that have stale security prices or that exceed certain thresholds as compared to previous fair values received from valuation service providers or brokers or derived from internal models. The Company performs procedures to understand and assess the methodologies, processes and controls of valuation service providers. In addition, the Company may validate the reasonableness of fair values by comparing information obtained from valuation service providers or brokers to other third-party valuation sources for selected securities. The Company performs ongoing price validation procedures such as back-testing of actual sales, which corroborate the various inputs used in internal models to market observable data. When fair value determinations are expected to be more variable, the Company validates them through reviews by members of management who have relevant expertise and who are independent of those charged with executing investment transactions.

The Company has two types of situations where investments are classified as Level 3 in the fair value hierarchy. The first is where specific inputs significant to the fair value estimation models are not market observable. This primarily occurs in the Company’s use of broker quotes to value certain securities where the inputs have not been corroborated to be market observable, and the use of valuation models that use significant non-market observable inputs. The second situation where the Company classifies securities in Level 3 is where quotes continue to be received from independent third-party valuation service providers and all significant inputs are market observable; however, there has been a significant decrease in the volume and level of activity for the asset when compared to normal market activity such that the degree of market observability has declined to a point where categorization as a Level 3 measurement is considered appropriate. The indicators considered in determining whether a significant decrease in the volume and level of activity for a specific asset has occurred include the level of new issuances in the primary market, trading volume in the secondary market, the level of credit spreads over historical levels, applicable bid-ask spreads, and price consensus among market participants and other pricing sources.

Certain assets are not carried at fair value on a recurring basis, including investments such as mortgage loans, bank loans, agent loans and policy loans. Accordingly, such investments are only included in the fair value hierarchy disclosure when the investment is subject to remeasurement at fair value after initial recognition and the resulting

remeasurement is reflected in the condensed consolidated financial statements.

In determining fair value, the Company principally uses the market approach which generally utilizes market transaction data for the same or similar instruments. To a lesser extent, the Company uses the income approach which involves determining fair values from discounted cash flow methodologies. For the majority of Level 2 and Level 3 valuations, a combination of the market and income approaches is used.

Summary of significant valuation techniques for assets and liabilities measured at fair value on a recurring basis

Level 1 measurements


•	Fixed income securities: Comprise certain U.S. Treasury fixed income securities. Valuation is based on unadjusted quoted prices for identical assets in active markets that the Company can access.


•	Equity securities: Comprise actively traded, exchange-listed equity securities. Valuation is based on unadjusted quoted prices for identical assets in active markets that the Company can access.


•	Short-term: Comprise U.S. Treasury bills valued based on unadjusted quoted prices for identical assets in active markets that the Company can access and actively traded money market funds that have daily quoted net asset values for identical assets that the Company can access.


•	Separate account assets: Comprise actively traded mutual funds that have daily quoted net asset values that are readily determinable for identical assets that the Company can access. Net asset values for the actively traded mutual funds in which the separate account assets are invested are obtained daily from the fund managers.


•	Other assets: Comprise free-standing exchange-listed derivatives that are valued based on unadjusted quoted prices for identical assets in active markets.

Level 2 measurements


•	Fixed income securities:

U.S. government and agencies: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields and credit spreads.

Municipal: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields and credit spreads.

Corporate - public: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields and credit spreads.

Corporate - privately placed: Valued using a discounted cash flow model that is widely accepted in the financial services industry and uses market observable inputs and inputs derived principally from, or corroborated by, observable market data. The primary inputs to the discounted cash flow model include an interest rate yield curve, as well as published credit spreads for similar assets in markets that are not active that incorporate the credit quality and industry sector of the issuer.

Foreign government: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields and credit spreads.

ABS - collateralized debt obligations (“CDO”) and ABS - consumer and other: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields, prepayment speeds, collateral performance and credit spreads. Certain ABS - CDO and ABS - consumer and other are valued based on non-binding broker quotes whose inputs have been corroborated to be market observable.

RMBS: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields, prepayment speeds, collateral performance and credit spreads.

CMBS: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields, collateral performance and credit spreads.

Redeemable preferred stock: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields, underlying stock prices and credit spreads.


•	Equity securities: The primary inputs to the valuation include quoted prices or quoted net asset values for identical or similar assets in markets that are not active.


•	Short-term: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields and credit spreads.


•	Other investments: Free-standing exchange listed derivatives that are not actively traded are valued based on quoted prices for identical instruments in markets that are not active.

Over-the-counter (“OTC”) derivatives, including interest rate swaps, foreign currency swaps, total return swaps, foreign exchange forward contracts, certain options and certain credit default swaps, are valued using models that rely on inputs such as interest rate yield curves, implied volatilities, index price levels, currency rates, and credit

spreads that are observable for substantially the full term of the contract. The valuation techniques underlying the models are widely accepted in the financial services industry and do not involve significant judgment.

Level 3 measurements


•	Fixed income securities:

Municipal: Comprise municipal bonds that are not rated by third-party credit rating agencies. The primary inputs to the valuation of these municipal bonds include quoted prices for identical or similar assets in markets that exhibit less liquidity relative to those markets supporting Level 2 fair value measurements, contractual cash flows, benchmark yields and credit spreads. Also included are municipal bonds valued based on non-binding broker quotes where the inputs have not been corroborated to be market observable and municipal bonds in default valued based on the present value of expected cash flows.

Corporate - public and Corporate - privately placed: Primarily valued based on non-binding broker quotes where the inputs have not been corroborated to be market observable. Other inputs include an interest rate yield curve, as well as published credit spreads for similar assets that incorporate the credit quality and industry sector of the issuer.

ABS - CDO, ABS - consumer and other, RMBS and CMBS: Valued based on non-binding broker quotes received from brokers who are familiar with the investments and where the inputs have not been corroborated to be market observable.


•	Equity securities: The primary inputs to the valuation include quoted prices or quoted net asset values for identical or similar assets in markets that exhibit less liquidity relative to those markets supporting Level 2 fair value measurements.


•	Short-term: For certain short-term investments, amortized cost is used as the best estimate of fair value.


•	Other investments: Certain OTC derivatives, such as interest rate caps, certain credit default swaps

and certain options (including swaptions), are valued using models that are widely accepted in the financial services industry. These are categorized as Level 3 as a result of the significance of non-market observable inputs such as volatility. Other primary inputs include interest rate yield curves and credit spreads.

•

Contractholder funds: Derivatives embedded in certain life and annuity contracts are valued internally using models widely accepted in the financial services industry that determine a single best estimate of fair value for the embedded derivatives within a block of contractholder liabilities. The models primarily use stochastically determined cash flows based on the contractual elements of embedded derivatives, projected option cost and applicable market data, such as interest rate yield curves and equity index volatility assumptions. These are categorized as Level 3 as a result of the significance of non-market observable inputs.

Assets and liabilities measured at fair value on a non-recurring basis

Mortgage loans written-down to fair value in connection with recognizing impairments are valued based on the fair value of the underlying collateral less costs to sell. Bank loans written-down to fair value are valued based on broker quotes from brokers familiar with the loans and current market conditions or based on internal valuation models.

Investments excluded from the fair value hierarchy

Limited partnerships carried at fair value, which do not have readily determinable fair values, use NAV provided by the investees and are excluded from the fair value hierarchy. These investments are generally not redeemable by the investees and generally cannot be sold without approval of the general partner. The Company receives distributions of income and proceeds from the liquidation of the underlying assets of the investees, which usually takes place in years 4-9 of the typical contractual life of 10-12 years. As of September 30, 2019, the Company has commitments to invest $545 million in these limited partnership interests.



Assets and liabilities measured at fair value
	As of September 30, 2019
($ in millions)	Quoted prices in active markets for identical assets (Level 1)			Significant other observable inputs (Level 2)			Significant unobservable inputs (Level 3)			Counterparty and cash collateral netting			Total
Assets
Fixed income securities:
U.S. government and agencies	$	3,707		$	404		$	—					$	4,111
Municipal	—			8,774			64						8,838
Corporate - public	—			31,538			104						31,642
Corporate - privately placed	—			12,289			87						12,376
Foreign government	—			993			—						993
ABS - CDO	—			297			63						360
ABS - consumer and other	—			447			15						462
RMBS	—			392			—						392
CMBS	—			30			34						64
Redeemable preferred stock	—			21			—						21
Total fixed income securities	3,707			55,185			367						59,259
Equity securities	7,453			368			385						8,206
Short-term investments	2,530			2,709			15						5,254
Other investments: Free-standing derivatives	—			186			—			$	(52	)	134
Separate account assets	2,942			—			—						2,942
Other assets	1			—			—						1
Total recurring basis assets	16,633			58,448			767			(52		)	75,796
Total assets at fair value	$	16,633		$	58,448		$	767		$	(52	)	$	75,796
% of total assets at fair value	22.0		%	77.1		%	1.0		%	(0.1		)%	100.0		%

Investments reported at NAV													1,761
Total													$	77,557

Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	—		$	(454	)				$	(454	)
Other liabilities: Free-standing derivatives	(1		)	(59		)	—			$	5		(55		)
Total recurring basis liabilities	$	(1	)	$	(59	)	$	(454	)	$	5		$	(509	)
% of total liabilities at fair value	0.2		%	11.6		%	89.2		%	(1.0		)%	100.0		%



Assets and liabilities measured at fair value
	As of December 31, 2018
($ in millions)	Quoted prices in active markets for identical assets (Level 1)			Significant other observable inputs (Level 2)			Significant unobservable inputs (Level 3)			Counterparty and cash collateral netting			Total
Assets
Fixed income securities:
U.S. government and agencies	$	5,085		$	432		$	—					$	5,517
Municipal	—			9,099			70						9,169
Corporate - public	—			29,200			70						29,270
Corporate - privately placed	—			10,776			90						10,866
Foreign government	—			747			—						747
ABS - CDO	—			263			6						269
ABS - consumer and other	—			713			63						776
RMBS	—			464			—						464
CMBS	—			44			26						70
Redeemable preferred stock	—			22			—						22
Total fixed income securities	5,085			51,760			325						57,170
Equity securities	4,364			331			341						5,036
Short-term investments	1,338			1,659			30						3,027
Other investments: Free-standing derivatives	—			139			1			$	(23	)	117
Separate account assets	2,805			—			—						2,805
Other assets	2			—			—						2
Total recurring basis assets	$	13,594		$	53,889		$	697		$	(23	)	$	68,157
% of total assets at fair value	19.9		%	79.1		%	1.0		%	—		%	100.0		%

Investments reported at NAV													1,779
Total													$	69,936
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	—		$	(224	)				$	(224	)
Other liabilities: Free-standing derivatives	(1		)	(62		)	—			$	6		(57		)
Total recurring basis liabilities	$	(1	)	$	(62	)	$	(224	)	$	6		$	(281	)
% of total liabilities at fair value	0.3		%	22.1		%	79.7		%	(2.1		)%	100.0		%



Quantitative information about the significant unobservable inputs used in Level 3 fair value measurements
($ in millions)	Fair value			Valuation technique	Unobservable input	Range	Weighted average
September 30, 2019
Derivatives embedded in life and annuity contracts – Equity-indexed and forward starting options	$	(417	)	Stochastic cash flow model	Projected option cost	1.0 - 4.2%	2.64%

December 31, 2018
Derivatives embedded in life and annuity contracts – Equity-indexed and forward starting options	$	(185	)	Stochastic cash flow model	Projected option cost	1.0 - 2.2%	1.74%

The embedded derivatives are equity-indexed and forward starting options in certain life and annuity products that provide customers with interest crediting rates based on the performance of the S&P 500. If the projected option cost increased (decreased), it would result in a higher (lower) liability fair value.

As of September 30, 2019 and December 31, 2018, Level 3 fair value measurements of fixed income securities total $367 million and $325 million, respectively, and include $87 million and $105 million, respectively, of securities valued based on non-binding broker quotes where the inputs have not been

corroborated to be market observable and $37 million and $44 million, respectively, of municipal fixed income securities that are not rated by third-party credit rating agencies. The Company does not develop the unobservable inputs used in measuring fair value; therefore, these are not included in the table above. However, an increase (decrease) in credit spreads for fixed income securities valued based on non-binding broker quotes would result in a lower (higher) fair value, and an increase (decrease) in the credit rating of municipal bonds that are not rated by third-party credit rating agencies would result in a higher (lower) fair value.



Rollforward of Level 3 assets and liabilities held at fair value during the three months period ended September 30, 2019
	Balance as of June 30, 2019			Total gains (losses) included in:						Transfers into Level 3			Transfers out of Level 3
($ in millions)	Balance as of June 30, 2019			Net income			OCI			Transfers into Level 3			Transfers out of Level 3
Assets
Fixed income securities:
Municipal	$	63		$	—		$	2		$	—		$	—
Corporate - public	46			—			1			—			(7		)
Corporate - privately placed	89			—			(1		)	—			—
ABS - CDO	10			1			—			50			(5		)
ABS - consumer and other	43			—			—			—			(30		)
RMBS	1			—			(1		)	—			—
CMBS	34			—			—			—			—
Total fixed income securities	286			1			1			50			(42		)
Equity securities	319			11			—			—			—
Short-term investments	5			—			—			—			—
Free-standing derivatives, net	—			—			—			—			—
Total recurring Level 3 assets	$	610		$	12		$	1		$	50		$	(42	)
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	(437	)	$	(14	)	$	—		$	—		$	—
Total recurring Level 3 liabilities	$	(437	)	$	(14	)	$	—		$	—		$	—

	Purchases			Sales			Issues			Settlements			Balance as of September 30, 2019
Assets
Fixed income securities:
Municipal	$	—		$	(1	)	$	—		$	—		$	64
Corporate - public	66			(2		)	—			—			104
Corporate - privately placed	1			—			—			(2		)	87
ABS - CDO	8			—			—			(1		)	63
ABS - consumer and other	3			—			—			(1		)	15
RMBS	—			—			—			—			—
CMBS	—			—			—			—			34
Total fixed income securities	78			(3		)	—			(4		)	367
Equity securities	55			—			—			—			385
Short-term investments	10			—			—			—			15
Free-standing derivatives, net	—			—			—			—			—
Total recurring Level 3 assets	$	143		$	(3	)	$	—		$	(4	)	$	767
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	—		$	(9	)	$	6		$	(454	)
Total recurring Level 3 liabilities	$	—		$	—		$	(9	)	$	6		$	(454	)



Total Level 3 gains (losses) included in net income for the three months ended September 30, 2019
	Net investment income		Realized capital gains and losses		Life contract benefits			Interest credited to contractholder funds			Total
Components of net income	$	5	$	7	$	(1	)	$	(13	)	$	(2	)



Rollforward of Level 3 assets and liabilities held at fair value during the nine months period ended September 30, 2019
	Balance as of December 31, 2018			Total gains (losses) included in:						Transfers into Level 3			Transfers out of Level 3
($ in millions)	Balance as of December 31, 2018			Net income			OCI			Transfers into Level 3			Transfers out of Level 3
Assets
Fixed income securities:
Municipal	$	70		$	—		$	4		$	—		$	(5	)
Corporate - public	70			—			3			—			(47		)
Corporate - privately placed	90			(1		)	1			15			(2		)
ABS - CDO	6			1			—			51			(5		)
ABS - consumer and other	63			—			—			—			(145		)
RMBS	—			—			(1		)	1			—
CMBS	26			—			—			3			—
Total fixed income securities	325			—			7			70			(204		)
Equity securities	341			49			—			—			—
Short-term investments	30			—			—			—			—
Free-standing derivatives, net	1			(1		)	—			—			—
Total recurring Level 3 assets	$	697		$	48		$	7		$	70		$	(204	)
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	(224	)	$	(54	)	$	—		$	(175	)	$	—
Total recurring Level 3 liabilities	$	(224	)	$	(54	)	$	—		$	(175	)	$	—

	Purchases			Sales			Issues			Settlements			Balance as of September 30, 2019
Assets
Fixed income securities:
Municipal	$	—		$	(4	)	$	—		$	(1	)	$	64
Corporate - public	86			(7		)	—			(1		)	104
Corporate - privately placed	2			(13		)	—			(5		)	87
ABS - CDO	11			—			—			(1		)	63
ABS - consumer and other	124			(22		)	—			(5		)	15
RMBS	—			—			—			—			—
CMBS	6			—			—			(1		)	34
Total fixed income securities	229			(46		)	—			(14		)	367
Equity securities	77			(82		)	—			—			385
Short-term investments	25			(40		)	—			—			15
Free-standing derivatives, net	—			—			—			—			—
Total recurring Level 3 assets	$	331		$	(168	)	$	—		$	(14	)	$	767
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	—		$	(9	)	$	8		$	(454	)
Total recurring Level 3 liabilities	$	—		$	—		$	(9	)	$	8		$	(454	)



Total Level 3 gains (losses) included in net income for the nine months ended September 30, 2019
	Net investment income		Realized capital gains and losses		Life contract benefits		Interest credited to contractholder funds			Total
Components of net income	$	10	$	38	$	2	$	(56	)	$	(6	)



Rollforward of Level 3 assets and liabilities held at fair value during the three months period ended September 30, 2018
	Balance as of June 30, 2018			Total gains (losses) included in:						Transfers into Level 3			Transfers out of Level 3
($ in millions)	Balance as of June 30, 2018			Net income			OCI			Transfers into Level 3			Transfers out of Level 3
Assets
Fixed income securities:
Municipal	$	106		$	—		$	(1	)	$	—		$	(9	)
Corporate - public	76			—			(1		)	12			(4		)
Corporate - privately placed	195			1			(1		)	—			(20		)
ABS - CDO	9			—			1			20			—
ABS - consumer and other	73			—			—			12			(29		)
CMBS	26			—			—			—			—
Total fixed income securities	485			1			(2		)	44			(62		)
Equity securities	291			8			—			—			—
Short-term investments	—			—			—			—			—
Free-standing derivatives, net	1			—			—			—			—
Total recurring Level 3 assets	$	777		$	9		$	(2	)	$	44		$	(62	)
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	(260	)	$	(7	)	$	—		$	—		$	—
Total recurring Level 3 liabilities	$	(260	)	$	(7	)	$	—		$	—		$	—

	Purchases			Sales			Issues			Settlements			Balance as of September 30, 2018
Assets
Fixed income securities:
Municipal	$	—		$	(6	)	$	—		$	(1	)	$	89
Corporate - public	10			(1		)	—			—			92
Corporate - privately placed	6			(2		)	—			(12		)	167
ABS - CDO	—			—			—			(1		)	29
ABS - consumer and other	33			(20		)	—			(17		)	52
CMBS	—			—			—			—			26
Total fixed income securities	49			(29		)	—			(31		)	455
Equity securities	21			—			—			—			320
Short-term investments	20			—			—			—			20
Free-standing derivatives, net	—			—			—			—			1			⁽¹⁾
Total recurring Level 3 assets	$	90		$	(29	)	$	—		$	(31	)	$	796
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	—		$	—		$	1		$	(266	)
Total recurring Level 3 liabilities	$	—		$	—		$	—		$	1		$	(266	)


⁽¹⁾	Comprises $1 million of assets.



Total Level 3 gains (losses) included in net income for the three months ended September 30, 2018
	Net investment income		Realized capital gains and losses		Life contract benefits		Interest credited to contractholder funds			Total
Components of net income	$	—	$	9	$	2	$	(9	)	$	2



Rollforward of Level 3 assets and liabilities held at fair value during the nine months period ended September 30, 2018
	Balance as of December 31, 2017			Total gains (losses) included in:						Transfers into Level 3			Transfers out of Level 3
($ in millions)	Balance as of December 31, 2017			Net income			OCI			Transfers into Level 3			Transfers out of Level 3
Assets
Fixed income securities:
Municipal	$	101		$	1		$	(2	)	$	—		$	(11	)
Corporate - public	108			—			(3		)	16			(9		)
Corporate - privately placed	224			(1		)	(2		)	20			(49		)
ABS - CDO	99			—			1			20			(89		)
ABS - consumer and other	48			—			1			22			(45		)
CMBS	26			—			—			—			—
Total fixed income securities	606			—			(5		)	78			(203		)
Equity securities	210			24			—			—			—
Short-term investments	20			—			—			—			—
Free-standing derivatives, net	1			—			—			—			—
Total recurring Level 3 assets	$	837		$	24		$	(5	)	$	78		$	(203	)
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	(286	)	$	17		$	—		$	—		$	—
Total recurring Level 3 liabilities	$	(286	)	$	17		$	—		$	—		$	—

	Purchases			Sales			Issues			Settlements			Balance as of September 30, 2018
Assets
Fixed income securities:
Municipal	$	10		$	(8	)	$	—		$	(2	)	$	89
Corporate - public	10			(27		)	—			(3		)	92
Corporate - privately placed	21			(5		)	—			(41		)	167
ABS - CDO	—			—			—			(2		)	29
ABS - consumer and other	108			(62		)	—			(20		)	52
CMBS	1			—			—			(1		)	26
Total fixed income securities	150			(102		)	—			(69		)	455
Equity securities	100			(14		)	—			—			320
Short-term investments	45			(45		)	—			—			20
Free-standing derivatives, net	—			—			—			—			1			⁽¹⁾
Total recurring Level 3 assets	$	295		$	(161	)	$	—		$	(69	)	$	796
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	—		$	(1	)	$	4		$	(266	)
Total recurring Level 3 liabilities	$	—		$	—		$	(1	)	$	4		$	(266	)


⁽¹⁾	Comprises $1 million of assets.



Total Level 3 gains (losses) included in net income for the nine months ended September 30, 2018
	Net investment income		Realized capital gains and losses		Life contract benefits		Interest credited to contractholder funds		Total
Components of net income	$	—	$	24	$	7	$	10	$	41

Transfers between level categorizations may occur due to changes in the availability of market observable inputs, which generally are caused by changes in market conditions such as liquidity, trading volume or bid-ask spreads. Transfers between level categorizations may also occur due to changes in the valuation source, including situations where a fair value quote is not provided by the Company’s independent third-party valuation service provider resulting in the price becoming stale or replaced with a broker quote whose inputs have not been corroborated to be market observable. This situation will result in the transfer of a security into Level 3.

Transfers in and out of level categorizations are reported as having occurred at the beginning of the quarter in which the transfer occurred. Therefore, for all transfers into Level 3, all realized and changes in unrealized gains and losses in the quarter of transfer are reflected in the Level 3 rollforward table.

There were no transfers between Level 1 and Level 2 during the three months and nine months ended September 30, 2019 or 2018.

Transfers into Level 3 during the three months and nine months ended September 30, 2019 and 2018 included situations where a quote was not provided by the Company’s independent third-party valuation service provider and as a result the price was stale or had been replaced with a broker quote where the inputs had not been corroborated to be market observable resulting in the security being classified as Level 3. Transfers into Level 3 during 2019 also included derivatives embedded in equity-indexed universal life contracts due to refinements in the valuation modeling resulting in an increase in significance of non-market observable inputs.

Transfers out of Level 3 during the three months and nine months ended September 30, 2019 and 2018 included situations where a broker quote was used in the prior period and a quote became available from the Company’s independent third-party valuation service provider in the current period. A quote utilizing the new pricing source was not available as of the prior period, and any gains or losses related to the change in valuation source for individual securities were not significant.



Valuation changes included in net income for Level 3 assets and liabilities held as of September 30,
($ in millions)	Three months ended September 30,						Nine months ended September 30,
($ in millions)	2019			2018			2019			2018
Assets
Equity securities	$	11		$	8		$	25		$	23
Free-standing derivatives, net	—			—			(1		)	—
Total recurring Level 3 assets	$	11		$	8		$	24		$	23
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	(14	)	$	(7	)	$	(54	)	$	17
Total recurring Level 3 liabilities	(14		)	(7		)	(54		)	17
Total included in net income	$	(3	)	$	1		$	(30	)	$	40

Components of net income
Net investment income	$	5		$	—		$	10		$	—
Realized capital gains and losses	6			8			14			23
Life contract benefits	(1		)	2			2			7
Interest credited to contractholder funds	(13		)	(9		)	(56		)	10
Total included in net income	$	(3	)	$	1		$	(30	)	$	40

Financial assets



Carrying values and fair value estimates of financial instruments not carried at fair value
($ in millions)		September 30, 2019				December 31, 2018
($ in millions)	Fair value level	Carrying value		Fair value		Carrying value		Fair value
Mortgage loans	Level 3	$	4,694	$	4,876	$	4,670	$	4,703
Bank loans	Level 3	1,223		1,199		1,350		1,298
Agent loans	Level 3	663		666		620		617

Financial liabilities



Carrying values and fair value estimates of financial instruments not carried at fair value
($ in millions)		September 30, 2019				December 31, 2018
($ in millions)	Fair value level	Carrying value		Fair value		Carrying value		Fair value
Contractholder funds on investment contracts	Level 3	$	8,619	$	9,435	$	9,250	$	9,665
Long-term debt	Level 2	6,630		7,710		6,451		6,708
Liability for collateral	Level 2	2,087		2,087		1,458		1,458

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Derivative Financial Instruments

9 Months Ended

Sep. 30, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments



Note 7	Derivative Financial Instruments

The Company uses derivatives for risk reduction and to increase investment portfolio returns through asset replication. Risk reduction activity is focused on managing the risks with certain assets and liabilities arising from the potential adverse impacts from changes in risk-free interest rates, changes in equity market valuations, increases in credit spreads and foreign currency fluctuations.

Asset replication refers to the “synthetic” creation of assets through the use of derivatives. The Company replicates fixed income securities using a combination of a credit default swap, index total return swap, or a foreign currency forward contract and one or more highly rated fixed income securities, primarily investment grade host bonds, to synthetically replicate the economic characteristics of one or more cash market securities. The Company replicates equity securities using futures, index total return swaps, and options to increase equity exposure.

Property-Liability may use interest rate swaps, swaptions, futures and options to manage the interest rate risks of existing investments. These instruments are utilized to change the duration of the portfolio in order to offset the economic effect that interest rates would otherwise have on the fair value of its fixed income securities. Fixed income index total return swaps are used to offset valuation losses in the fixed income portfolio during periods of declining market values. Credit default swaps are typically used to mitigate the credit risk within the Property-Liability fixed income portfolio. Equity index total return swaps, futures and options are used by Property-Liability to offset valuation losses in the equity portfolio during periods of declining equity market values. In addition, equity futures are used to hedge the market risk related to deferred compensation liability contracts. Forward contracts are primarily used by Property-Liability to hedge foreign currency risk associated with holding foreign currency denominated investments and foreign operations.

Asset-liability management is a risk management strategy that is principally employed by Allstate Life and Allstate Annuities to balance the respective interest-rate sensitivities of its assets and liabilities. Depending upon the attributes of the assets acquired and liabilities issued, derivative instruments such as interest rate swaps, caps, swaptions and futures are utilized to change the interest rate characteristics of existing assets and liabilities to ensure the relationship is maintained within specified ranges and to reduce exposure to rising or falling interest rates. Fixed income index total return swaps are used to offset valuation losses in the portfolio during periods of declining market values. Credit default swaps are typically used to mitigate the credit risk within the Allstate Life and Allstate Annuities fixed income portfolios. Futures and options are used for hedging the equity exposure contained in equity indexed life and annuity product contracts that offer equity returns to contractholders. In addition, the Company uses equity index total return swaps, options and futures to offset valuation losses in the equity portfolio during periods of declining equity market values. Foreign currency swaps and forwards are primarily used to reduce the foreign currency risk associated with holding foreign currency denominated investments.

The Company also has derivatives embedded in non-derivative host contracts that are required to be separated from the host contracts and accounted for at fair value with changes in fair value of embedded derivatives reported in net income. The Company’s primary embedded derivatives are equity options in life and annuity product contracts, which provide returns linked to equity indices to contractholders.

When derivatives meet specific criteria, they may be designated as accounting hedges and accounted for as fair value, cash flow, foreign currency fair value or foreign currency cash flow hedges. The Company designates certain investment risk transfer reinsurance agreements as fair value hedges when the hedging instrument is highly effective in offsetting the risk of

changes in the fair value of the hedged item. The fair value of hedged liability is reported in contractholder funds in the Condensed Consolidated Statements of Financial Position. The impact from results of the fair value hedge is reported in interest credited to contractholder funds in the Condensed Consolidated Statements of Operations.

The notional amounts specified in the contracts are used to calculate the exchange of contractual payments under the agreements and are generally not representative of the potential for gain or loss on these agreements. However, the notional amounts specified in credit default swaps where the Company has sold credit protection represent the maximum amount of potential loss, assuming no recoveries.

Fair value, which is equal to the carrying value, is the estimated amount that the Company would receive or pay to terminate the derivative contracts at the reporting date. The carrying value amounts for OTC derivatives are further adjusted for the effects, if any, of enforceable master netting agreements and are presented on a net basis, by counterparty agreement, in the Condensed Consolidated Statements of Financial Position.

For those derivatives which qualify and have been designated as fair value accounting hedges, net income includes the changes in the fair value of both the derivative instrument and the hedged risk, and therefore reflects any hedging ineffectiveness. Non-hedge accounting is generally used for “portfolio” level hedging strategies where the terms of the individual hedged items do not meet the strict homogeneity requirements to permit the application of hedge accounting. For non-hedge derivatives, net income includes changes in fair value and accrued periodic settlements, when applicable. With the exception of non-hedge derivatives used for asset replication and non-hedge embedded derivatives, all of the Company’s derivatives are evaluated for their ongoing effectiveness as either accounting hedge or non-hedge derivative financial instruments on at least a quarterly basis.

Fair value hedges The Company had one derivative used in fair value hedging relationships and had no foreign currency contracts designated as fair value hedges for the three and nine months ended September 30, 2019 and 2018.

Cash flow hedges The Company had no derivatives used in cash flow hedging relationships for the three months ended September 30, 2019 and September 30, 2018. The Company had no foreign currency contracts designated as cash flow hedges during the nine months ended September 30, 2019 and one foreign currency contract designated as a cash flow hedge during the nine months ended September 30, 2018.



Summary of the volume and fair value positions of derivative instruments as of September 30, 2019
($ in millions, except number of contracts)		Volume ⁽¹⁾
($ in millions, except number of contracts)	Balance sheet location	Notional amount		Number of contracts	Fair value, net			Gross asset		Gross liability
Asset derivatives
Derivatives designated as fair value accounting hedging instruments
Other	Other assets	$	2	n/a	$	—		$	—	$	—
Derivatives not designated as accounting hedging instruments
Interest rate contracts
Interest rate cap agreements	Other investments	21		n/a	—			—		—
Futures	Other assets	—		2,674	—			—		—
Equity and index contracts
Options	Other investments	—		9,290	131			131		—
Futures	Other assets	—		1,607	1			1		—
Total return index contracts
Total return swap agreements – fixed income	Other investments	7		n/a	—			—		—
Total return swap agreements – equity index	Other investments	170		n/a	3			3		—
Foreign currency contracts
Foreign currency forwards	Other investments	291		n/a	19			20		(1		)
Credit default contracts
Credit default swaps – buying protection	Other investments	149		n/a	(4		)	—		(4		)
Credit default swaps – selling protection	Other investments	5		n/a	—			—		—
Subtotal		643		13,571	150			155		(5		)
Total asset derivatives		$	645	13,571	$	150		$	155	$	(5	)

Liability derivatives
Derivatives not designated as accounting hedging instruments
Interest rate contracts
Interest rate cap agreements	Other liabilities & accrued expenses	$	14	n/a	$	—		$	—	$	—
Futures	Other liabilities & accrued expenses	—		2,915	—			—		—
Equity and index contracts
Options	Other liabilities & accrued expenses	—		9,016	(52		)	—		(52		)
Futures	Other liabilities & accrued expenses	—		1,383	(1		)	—		(1		)
Total return index contracts
Total return swap agreements – fixed income	Other liabilities & accrued expenses	228		n/a	8			8		—
Foreign currency contracts
Foreign currency forwards	Other liabilities & accrued expenses	396		n/a	23			24		(1		)
Embedded derivative financial instruments
Guaranteed accumulation benefits	Contractholder funds	161		n/a	(21		)	—		(21		)
Guaranteed withdrawal benefits	Contractholder funds	205		n/a	(16		)	—		(16		)
Equity-indexed and forward starting options in life and annuity product contracts	Contractholder funds	1,782		n/a	(417		)	—		(417		)
Credit default contracts
Credit default swaps – buying protection	Other liabilities & accrued expenses	46		n/a	(1		)	—		(1		)
Credit default swaps – selling protection	Other liabilities & accrued expenses	4		n/a	—			—		—
Total liability derivatives		2,836		13,314	(477		)	$	32	$	(509	)
Total derivatives		$	3,481	26,885	$	(327	)


⁽¹⁾	Volume for OTC and cleared derivative contracts is represented by their notional amounts. Volume for exchange traded derivatives is represented by the number of contracts, which is the basis on which they are traded. (n/a = not applicable)



Summary of the volume and fair value positions of derivative instruments as of December 31, 2018
($ in millions, except number of contracts)		Volume
($ in millions, except number of contracts)	Balance sheet location	Notional amount		Number of contracts	Fair value, net			Gross asset		Gross liability
Asset derivatives
Derivatives not designated as accounting hedging instruments
Interest rate contracts
Interest rate cap agreements	Other investments	$	6	n/a	$	—		$	—	$	—
Futures	Other assets	—		1,330	1			1		—
Equity and index contracts
Options	Other investments	—		11,131	115			115		—
Futures	Other assets	—		1,453	1			1		—
Total return index contracts
Total return swap agreements – fixed income	Other investments	7		n/a	—			—		—
Total return swap agreements – equity index	Other investments	61		n/a	(2		)	—		(2		)
Foreign currency contracts
Foreign currency forwards	Other investments	258		n/a	10			11		(1		)
Credit default contracts
Credit default swaps – buying protection	Other investments	136		n/a	(1		)	2		(3		)
Other contracts
Other	Other assets	2		n/a	—			—		—
Total asset derivatives		$	470	13,914	$	124		$	130	$	(6	)

Liability derivatives
Derivatives not designated as accounting hedging instruments
Interest rate contracts
Interest rate cap agreements	Other liabilities & accrued expenses	$	31	n/a	$	1		$	1	$	—
Futures	Other liabilities & accrued expenses	—		1,300	(1		)	—		(1		)
Equity and index contracts
Options and futures	Other liabilities & accrued expenses	—		10,956	(50		)	—		(50		)
Total return index contracts
Total return swap agreements – fixed income	Other liabilities & accrued expenses	38		n/a	(1		)	—		(1		)
Total return swap agreements – equity index	Other liabilities & accrued expenses	71		n/a	(4		)	—		(4		)
Foreign currency contracts
Foreign currency forwards	Other liabilities & accrued expenses	341		n/a	10			11		(1		)
Embedded derivative financial instruments
Guaranteed accumulation benefits	Contractholder funds	169		n/a	(25		)	—		(25		)
Guaranteed withdrawal benefits	Contractholder funds	210		n/a	(14		)	—		(14		)
Equity-indexed and forward starting options in life and annuity product contracts	Contractholder funds	1,770		n/a	(185		)	—		(185		)
Credit default contracts
Credit default swaps – buying protection	Other liabilities & accrued expenses	40		n/a	—			—		—
Credit default swaps – selling protection	Other liabilities & accrued expenses	5		n/a	—			—		—
Total liability derivatives		2,675		12,256	(269		)	$	12	$	(281	)
Total derivatives		$	3,145	26,170	$	(145	)



Gross and net amounts for OTC derivatives ⁽¹⁾
($ in millions)				Offsets
($ in millions)	Gross amount			Counter-party netting			Cash collateral (received) pledged			Net amount on balance sheet			Securities collateral (received) pledged		Net amount
September 30, 2019
Asset derivatives	$	55		$	(37	)	$	(15	)	$	3		$	—	$	3
Liability derivatives	(7		)	37			(32		)	(2		)	—		(2		)

December 31, 2018
Asset derivatives	$	25		$	(18	)	$	(5	)	$	2		$	—	$	2
Liability derivatives	(12		)	18			(12		)	(6		)	—		(6		)


⁽¹⁾	All OTC derivatives are subject to enforceable master netting agreements.



Gains (losses) from valuation and settlements reported on derivatives not designated as accounting hedges
($ in millions)	Realized capital gains (losses)			Life contract benefits			Interest credited to contractholder funds			Operating costs and expenses			Total gain (loss) recognized in net income on derivatives
Three months ended September 30, 2019
Interest rate contracts	$	32		$	—		$	—		$	—		$	32
Equity and index contracts	(10		)	—			4			(1		)	(7		)
Embedded derivative financial instruments	—			(1		)	(16		)	—			(17		)
Foreign currency contracts	21			—			—			—			21
Credit default contracts	(1		)	—			—			—			(1		)
Total return swaps - fixed income	1			—			—			—			1
Total return swaps - equity index	(3		)	—			—			—			(3		)
Total	$	40		$	(1	)	$	(12	)	$	(1	)	$	26

Nine months ended September 30, 2019
Interest rate contracts	$	58		$	—		$	—		$	—		$	58
Equity and index contracts	(98		)	—			46			25			(27		)
Embedded derivative financial instruments	—			2			(57		)	—			(55		)
Foreign currency contracts	31			—			—			—			31
Credit default contracts	(6		)	—			—			—			(6		)
Total return swaps - fixed income	11			—			—			—			11
Total return swaps - equity index	20			—			—			—			20
Total	$	16		$	2		$	(11	)	$	25		$	32

Three months ended September 30, 2018
Interest rate contracts	$	(1	)	$	—		$	—		$	—		$	(1	)
Equity and index contracts	(12		)	—			19			9			16
Embedded derivative financial instruments	—			2			(8		)	—			(6		)
Foreign currency contracts	7			—			—			—			7
Total return swaps	11			—			—			—			11
Total	$	5		$	2		$	11		$	9		$	27

Nine months ended September 30, 2018
Equity and index contracts	$	(15	)	$	—		$	25		$	12		$	22
Embedded derivative financial instruments	—			7			13			—			20
Foreign currency contracts	19			—			—			(1		)	18
Total return swaps	12			—			—			—			12
Credit default contracts	1			—			—			—			1
Total	$	17		$	7		$	38		$	11		$	73

The Company manages its exposure to credit risk by utilizing highly rated counterparties, establishing risk control limits, executing legally enforceable master netting agreements (“MNAs”) and obtaining collateral where appropriate. The Company uses MNAs for OTC derivative transactions that permit either party to net payments due for transactions and collateral is either pledged or obtained when certain predetermined exposure limits are exceeded. As of September 30, 2019, counterparties pledged $48 million in collateral to the Company, and the Company pledged $1 million in collateral to counterparties under MNAs for contracts without credit-risk-contingent features.

The Company has not incurred any losses on derivative financial instruments due to counterparty nonperformance. Other derivatives, including futures and certain option contracts, are traded on organized exchanges which require margin deposits and guarantee the execution of trades, thereby mitigating any potential credit risk.

Counterparty credit exposure represents the Company’s potential loss if all of the counterparties concurrently fail to perform under the contractual terms of the contracts and all collateral, if any, becomes worthless. This exposure is measured by the fair value of OTC derivative contracts with a positive fair value at the reporting date reduced by the effect, if any, of legally enforceable master netting agreements.



OTC derivatives counterparty credit exposure by counterparty credit rating
($ in millions)	September 30, 2019							December 31, 2018
Rating ⁽¹⁾	Number of counter- parties	Notional amount⁽²⁾		Credit exposure⁽²⁾		Exposure, net of collateral⁽²⁾		Number of counter- parties	Notional amount⁽²⁾		Credit exposure⁽²⁾		Exposure, net of collateral⁽²⁾
A+	6	$	1,152	$	46	$	3	3	$	643	$	19	$	1
A	1	112		3		—		2	121		1		—
Total	7	$	1,264	$	49	$	3	5	$	764	$	20	$	1


⁽¹⁾	Allstate uses the lower of S&P’s or Moody’s long-term debt issuer ratings.


⁽²⁾	Only OTC derivatives with a net positive fair value are included for each counterparty.

For certain exchange traded and cleared derivatives, margin deposits are required as well as daily cash settlements of margin accounts. As of September 30, 2019, the Company pledged $50 million in the form of margin deposits.

Market risk is the risk that the Company will incur losses due to adverse changes in market rates and prices. Market risk exists for all of the derivative financial instruments the Company currently holds, as these instruments may become less valuable due to adverse changes in market conditions. To limit this risk, the Company’s senior management has established risk control limits. In addition, changes in fair value of the derivative financial instruments that the Company uses for risk management purposes are generally offset by the change in the fair value or cash flows of the hedged risk component of the related assets, liabilities or forecasted transactions.

Certain of the Company’s derivative instruments contain credit-risk-contingent termination events, cross-default provisions and credit support annex agreements. Credit-risk-contingent termination

events allow the counterparties to terminate the derivative agreement or a specific trade on certain dates if AIC’s, ALIC’s or Allstate Life Insurance Company of New York’s (“ALNY”) financial strength credit ratings by Moody’s or S&P fall below a certain level. Credit-risk-contingent cross-default provisions allow the counterparties to terminate the derivative agreement if the Company defaults by pre-determined threshold amounts on certain debt instruments. Credit-risk-contingent credit support annex agreements specify the amount of collateral the Company must post to counterparties based on AIC’s, ALIC’s or ALNY’s financial strength credit ratings by Moody’s or S&P, or in the event AIC, ALIC or ALNY are no longer rated by either Moody’s or S&P.

The following summarizes the fair value of derivative instruments with termination, cross-default or collateral credit-risk-contingent features that are in a liability position, as well as the fair value of assets and collateral that are netted against the liability in accordance with provisions within legally enforceable MNAs.



($ in millions)	As of September 30, 2019			As of December 31, 2018
Gross liability fair value of contracts containing credit-risk-contingent features	$	7		$	11
Gross asset fair value of contracts containing credit-risk-contingent features and subject to MNAs	(7		)	(5		)
Collateral posted under MNAs for contracts containing credit-risk-contingent features	—			(2		)
Maximum amount of additional exposure for contracts with credit-risk-contingent features if all features were triggered concurrently	$	—		$	4

Reserve for Property and Casualty Insurance Claims and Claims Expense

9 Months Ended

Sep. 30, 2019

Reserve for Property-Liability Insurance Claims and Claims Expense [Abstract]

Reserve for Property and Liability Insurance Claims and Claims Expense



Note 8	Reserve for Property and Casualty Insurance Claims and Claims Expense

The Company establishes reserves for claims and claims expense on reported and unreported claims of insured losses. The Company’s reserving process takes into account known facts and interpretations of circumstances and factors including the Company’s experience with similar cases, actual claims paid, historical trends involving claim payment patterns and pending levels of unpaid claims, loss management programs, product mix and contractual terms, changes in law and regulation, judicial decisions, and economic conditions. In the normal course of business, the Company may also supplement its claims processes by utilizing third-party adjusters, appraisers, engineers, inspectors, and other professionals and information sources to assess and settle catastrophe and non-catastrophe related claims. The effects of inflation are implicitly considered in the reserving process.

Because reserves are estimates of unpaid portions of losses that have occurred, including incurred but not reported (“IBNR”) losses, the establishment of appropriate reserves, including reserves for catastrophes, Discontinued Lines and Coverages and reinsurance and indemnification recoverables, is an inherently uncertain and complex process. The ultimate cost of losses may vary materially from recorded amounts, which are based on management’s best estimates. The highest degree of uncertainty is associated with reserves for losses incurred in the

current reporting period as it contains the greatest proportion of losses that have not been reported or settled. The Company regularly updates its reserve estimates as new information becomes available and as events unfold that may affect the resolution of unsettled claims. Changes in prior year reserve estimates, which may be material, are reported in property and casualty insurance claims and claims expense in the Condensed Consolidated Statements of Operations in the period such changes are determined.

Management believes that the reserve for property and casualty insurance claims and claims expense, net of recoverables, is appropriately established in the aggregate and adequate to cover the ultimate net cost of reported and unreported claims arising from losses which had occurred by the date of the Condensed Consolidated Statements of Financial Position based on available facts, technology, laws and regulations.

Allstate’s reserves for asbestos claims were $840 million and $866 million, net of recoverables of $387 million and $400 million, as of September 30, 2019 and December 31, 2018, respectively. Reserves for environmental claims were $188 million and $170 million, net of recoverables of $42 million and $39 million, as of September 30, 2019 and December 31, 2018, respectively.



Rollforward of the reserve for property and casualty insurance claims and claims expense
	Nine months ended September 30,
($ in millions)	2019			2018
Balance as of January 1	$	27,423		$	26,325
Less recoverables ⁽¹⁾	(7,155		)	(6,471		)
Net balance as of January 1	20,268			19,854
Incurred claims and claims expense related to:
Current year	18,345			16,846
Prior years	(118		)	(135		)
Total incurred	18,227			16,711
Claims and claims expense paid related to:
Current year	(10,640		)	(10,077		)
Prior years	(6,872		)	(6,174		)
Total paid	(17,512		)	(16,251		)
Net balance as of September 30	20,983			20,314
Plus recoverables	7,093			6,625
Balance as of September 30	$	28,076		$	26,939


⁽¹⁾	Recoverables comprises reinsurance and indemnification recoverables.

Incurred claims and claims expense represents the sum of paid losses and reserve changes in the period. This expense included losses from catastrophes of $2.26 billion and $1.89 billion in the nine months ended September 30, 2019 and 2018, respectively, net of recoverables.

Catastrophes are an inherent risk of the property and casualty insurance business that have contributed to, and will continue to contribute to, material year-to-year fluctuations in the Company’s results of operations and financial position.



Prior year reserve reestimates included in claims and claims expense ⁽¹⁾
	Nine months ended September 30,
($ in millions)	Non-catastrophes						Catastrophes						Total
	2019			2018			2019 ⁽²⁾			2018			2019			2018
Auto ⁽³⁾	$	(302	)	$	(319	)	$	(9	)	$	(37	)	$	(311	)	$	(356	)
Homeowners	—			(38		)	59			84			59			46
Other personal lines	13			(13		)	4			(2		)	17			(15		)
Commercial lines	18			107			(1		)	—			17			107
Discontinued Lines and Coverages ⁽⁴⁾	103			85			—			—			103			85
Service Businesses	(3		)	(2		)	—			—			(3		)	(2		)
Total prior year reserve reestimates	$	(171	)	$	(180	)	$	53		$	45		$	(118	)	$	(135	)


⁽¹⁾	Favorable reserve reestimates are shown in parentheses.


⁽²⁾	Includes $13 million of reinstatement reinsurance premiums incurred during the period related to the 2018 Camp Fire, which primarily impacted homeowners reestimates.


⁽³⁾	Non-catastrophe results related to continued favorable personal lines auto injury coverage development.

⁽⁴⁾

The Company’s 2019 annual reserve review, using established industry and actuarial best practices, resulted in unfavorable reestimates of $95 million.

Reinsurance

9 Months Ended

Sep. 30, 2019

Reinsurance Disclosures [Abstract]

Reinsurance



Note 9	Reinsurance



Effects of reinsurance ceded on property and casualty premiums earned and life premiums and contract charges
($ in millions)	Three months ended September 30,						Nine months ended September 30,
($ in millions)	2019			2018			2019			2018
Property and casualty insurance premiums earned	$	(289	)	$	(260	)	$	(836	)	$	(756	)
Life premiums and contract charges	(68		)	(76		)	(200		)	(221		)



Effects of reinsurance ceded on property and casualty insurance claims and claims expense, life contract benefits and interest credited to contractholder funds
($ in millions)	Three months ended September 30,						Nine months ended September 30,
($ in millions)	2019			2018			2019			2018
Property and casualty insurance claims and claims expense	$	(216	)	$	(247	)	$	(465	)	$	(572	)
Life contract benefits	(74		)	(35		)	(92		)	(150		)
Interest credited to contractholder funds	(6		)	(5		)	(14		)	(16		)

Reinsurance Recoverables As of September 30, 2019, the Company had $9.36 billion of reinsurance and indemnification recoverables, including $781 million of reinsurance recoverables for its life insurance business. Of the $781 million, the Company had $64 million of reinsurance recoverables, net of an allowance for estimated uncollectible amounts, related to Scottish Re (U.S.), Inc. On December 14, 2018, the Delaware Insurance Commissioner placed Scottish Re (U.S.), Inc. under regulatory supervision. On March 6, 2019, the Chancery Court of the State of Delaware entered a Rehabilitation and Injunction Order (the “Rehabilitation Order”) in response to a petition filed by the Insurance Commissioner (the “Petition”). Pursuant to the Petition, it is expected that Scottish Re (U.S.), Inc. will submit a Plan of Rehabilitation. The Company joined in

a joint motion filed on behalf of several affected parties asking the court to allow a specified amount of offsetting claim payments and losses against premiums remitted to Scottish Re (U.S.), Inc. The Company also filed a separate motion related to the reimbursement of claim payments where Scottish Re (U.S.), Inc. is also acting as administrator. The Court has not yet ruled on either of these motions. In the interim, the Company and several other affected parties have been permitted to exercise certain setoff rights while the parties address any potential disputes.

The Company continues to monitor Scottish Re (U.S.), Inc. for future developments and will reevaluate its allowance for uncollectible amounts as new information becomes available.

Capital Structure

9 Months Ended

Sep. 30, 2019

Capital Structure

Capital Structure



Note 10	Capital Structure

Issuance of preferred stock On August 8, 2019, the Company issued 46,000 shares of 5.100% Fixed Rate Noncumulative Perpetual Preferred Stock, Series H, par value $1.00 per share and liquidation preference $25,000 per share, for gross proceeds of $1.15 billion. The preferred stock is perpetual and has no maturity date. The preferred stock is redeemable at the

Company’s option in whole or in part, on or after October 15, 2024, at a redemption price of $25,000 per share, plus declared and unpaid dividends. Prior to October 15, 2024, the preferred stock is redeemable at the Company’s option, in whole but not in part, within 90 days of the occurrence of a certain regulatory capital event at a redemption price equal to $25,000

per share or a certain rating agency event at a redemption price equal to $25,500 per share, plus declared and unpaid dividends.

Issuance of debt On June 10, 2019, the Company issued $500 million of 3.850% Senior Notes due 2049. Interest on the Senior Notes is payable semi-annually in arrears on February 10 and August 10 of each year, beginning on February 10, 2020. The Senior Notes are redeemable at any time at the applicable redemption price prior to the maturity date. The proceeds of this issuance will be used for general corporate purposes.

Repayment of debt On May 16, 2019, the Company repaid $317 million of 7.450% Senior Notes, Series B, at maturity.

Subsequent event On October 15, 2019, the Company redeemed all 5,400 shares of its Fixed Rate Noncumulative Perpetual Preferred Stock, Series D, par

value $1.00 per share and liquidation preference $25,000 per share, all 29,900 shares of its Fixed Rate Noncumulative Perpetual Preferred Stock, Series E, par value $1.00 per share and liquidation preference $25,000 per share, all 10,000 shares of its Fixed Rate Noncumulative Perpetual Preferred Stock, Series F, par value $1.00 per share and liquidation preference $25,000 per share, and the corresponding depositary shares. The total redemption payment was $1.13 billion, using the proceeds from the issuance of the Fixed Rate Noncumulative Perpetual Preferred Stock, Series H. In the fourth quarter of 2019, the Company will recognize $37 million of original issuance costs in preferred stock dividends on the Consolidated Statements of Operations and Consolidated Statements of Shareholders’ Equity as a result of the preferred stock redemptions.

Company Restructuring

9 Months Ended

Sep. 30, 2019

Restructuring and Related Activities [Abstract]

Company Restructuring



Note 11	Company Restructuring

The Company undertakes various programs to reduce expenses. These programs generally involve a reduction in staffing levels, and in certain cases, office closures. Restructuring and related charges primarily include the following costs related to these programs:


•	Employee - severance and relocation benefits


•	Exit - contract termination penalties

The expenses related to these activities are included in the Condensed Consolidated Statements of Operations as restructuring and related charges and totaled zero and $13 million during the three months ended September 30, 2019 and 2018, respectively, and $27 million and $55 million during the nine months ended September 30, 2019 and 2018, respectively. Restructuring expenses in 2019 primarily related to realignment of certain employees to centralized talent centers.



Restructuring activity during the period
($ in millions)	Employee costs			Exit costs			Total liability
Restructuring liability as of December 31, 2018	$	29		$	15		$	44
Expense incurred	31			3			34
Adjustments to liability	(7		)	—			(7		)
Payments	(37		)	(7		)	(44		)
Restructuring liability as of September 30, 2019	$	16		$	11		$	27

As of September 30, 2019, the cumulative amount incurred to date for active programs related to employee severance, relocation benefits and exit expenses totaled $102 million for employee costs and $10 million for exit costs.

Guarantees and Contingent Liabilities

9 Months Ended

Sep. 30, 2019

Guarantees and Contingent Liabilities

Guarantees and Contingent Liabilities



Note 12	Guarantees and Contingent Liabilities

Shared markets and state facility assessments

The Company is required to participate in assigned risk plans, reinsurance facilities and joint underwriting associations in various states that provide insurance coverage to individuals or entities that otherwise are unable to purchase such coverage from private insurers.

The Company routinely reviews its exposure to assessments from these plans, facilities and government programs. Underwriting results related to these arrangements, which tend to be adverse, have been immaterial to the Company’s results of operations. Because of the Company’s participation, it may be exposed to losses that surpass the capitalization of these facilities and/or assessments from these facilities.

Guarantees

Related to the sale of Lincoln Benefit Life Company on April 1, 2014, ALIC agreed to indemnify Resolution Life Holdings, Inc. in connection with certain representations, warranties and covenants of ALIC, and certain liabilities specifically excluded from the transaction, subject to specific contractual limitations regarding ALIC’s maximum obligation. Management does not believe these indemnifications will have a material effect on results of operations, cash flows or financial position of the Company.

Related to the disposal through reinsurance of substantially all of its variable annuity business to Prudential in 2006, the Company and its consolidated subsidiaries, ALIC and ALNY, have agreed to indemnify Prudential for certain pre-closing contingent liabilities (including extra-contractual liabilities of ALIC and ALNY

and liabilities specifically excluded from the transaction) that ALIC and ALNY have agreed to retain. In addition, the Company, ALIC and ALNY will each indemnify Prudential for certain post-closing liabilities that may arise from the acts of ALIC, ALNY and their agents, including certain liabilities arising from ALIC’s and ALNY’s provision of transition services. The reinsurance agreements contain no limitations or indemnifications with regard to insurance risk transfer and transferred all of the future risks and responsibilities for performance on the underlying variable annuity contracts to Prudential, including those related to benefit guarantees. Management does not believe this agreement will have a material effect on results of operations, cash flows or financial position of the Company.

In the normal course of business, the Company provides standard indemnifications to contractual counterparties in connection with numerous transactions, including acquisitions and divestitures. The types of indemnifications typically provided include indemnifications for breaches of representations and warranties, taxes and certain other liabilities, such as third-party lawsuits. The indemnification clauses are often standard contractual terms and are entered into in the normal course of business based on an assessment that the risk of loss would be remote. The terms of the indemnifications vary in duration and nature. In many cases, the maximum obligation is not explicitly stated and the contingencies triggering the obligation to indemnify have not occurred and are not expected to occur. Consequently, the maximum amount of the obligation under such indemnifications is not determinable. Historically, the Company has not made any material payments pursuant to these obligations.

The aggregate liability balance related to all guarantees was not material as of September 30, 2019.

Regulation and compliance

The Company is subject to extensive laws, regulations, administrative directives, and regulatory actions. From time to time, regulatory authorities or legislative bodies seek to influence and restrict premium rates, require premium refunds to policyholders, require reinstatement of terminated policies, prescribe rules or guidelines on how affiliates compete in the marketplace, restrict the ability of insurers to cancel or non-renew policies, require insurers to continue to write new policies or limit their ability to write new policies, limit insurers’ ability to change coverage terms or to impose underwriting standards, impose additional regulations regarding agency and broker compensation, regulate the nature of and amount of investments, impose fines and penalties for unintended errors or mistakes, impose additional regulations regarding cybersecurity and privacy, and otherwise expand overall regulation of insurance products and the insurance industry. In addition, the Company is subject to laws and regulations administered and enforced by federal agencies, international agencies, and other organizations, including but not limited to the Securities and Exchange Commission (“SEC”), the

Financial Industry Regulatory Authority, the U.S. Equal Employment Opportunity Commission, and the U.S. Department of Justice. The Company has established procedures and policies to facilitate compliance with laws and regulations, to foster prudent business operations, and to support financial reporting. The Company routinely reviews its practices to validate compliance with laws and regulations and with internal procedures and policies. As a result of these reviews, from time to time the Company may decide to modify some of its procedures and policies. Such modifications, and the reviews that led to them, may be accompanied by payments being made and costs being incurred. The ultimate changes and eventual effects of these actions on the Company’s business, if any, are uncertain.

Legal and regulatory proceedings and inquiries

The Company and certain subsidiaries are involved in a number of lawsuits, regulatory inquiries, and other legal proceedings arising out of various aspects of its business.

Background These matters raise difficult and complicated factual and legal issues and are subject to many uncertainties and complexities, including the underlying facts of each matter; novel legal issues; variations between jurisdictions in which matters are being litigated, heard, or investigated; changes in assigned judges; differences or developments in applicable laws and judicial interpretations; judges reconsidering prior rulings; the length of time before many of these matters might be resolved by settlement, through litigation, or otherwise; adjustments with respect to anticipated trial schedules and other proceedings; developments in similar actions against other companies; the fact that some of the lawsuits are putative class actions in which a class has not been certified and in which the purported class may not be clearly defined; the fact that some of the lawsuits involve multi-state class actions in which the applicable law(s) for the claims at issue is in dispute and therefore unclear; and the challenging legal environment faced by corporations and insurance companies.

The outcome of these matters may be affected by decisions, verdicts, and settlements, and the timing of such decisions, verdicts, and settlements, in other individual and class action lawsuits that involve the Company, other insurers, or other entities and by other legal, governmental, and regulatory actions that involve the Company, other insurers, or other entities. The outcome may also be affected by future state or federal legislation, the timing or substance of which cannot be predicted.

In the lawsuits, plaintiffs seek a variety of remedies which may include equitable relief in the form of injunctive and other remedies and monetary relief in the form of contractual and extra-contractual damages. In some cases, the monetary damages sought may include punitive or treble damages. Often specific information about the relief sought, such as the amount of damages, is not available because plaintiffs have not requested specific relief in their

pleadings. When specific monetary demands are made, they are often set just below a state court jurisdictional limit in order to seek the maximum amount available in state court, regardless of the specifics of the case, while still avoiding the risk of removal to federal court. In Allstate’s experience, monetary demands in pleadings bear little relation to the ultimate loss, if any, to the Company.

In connection with regulatory examinations and proceedings, government authorities may seek various forms of relief, including penalties, restitution, and changes in business practices. The Company may not be advised of the nature and extent of relief sought until the final stages of the examination or proceeding.

Accrual and disclosure policy The Company reviews its lawsuits, regulatory inquiries, and other legal proceedings on an ongoing basis and follows appropriate accounting guidance when making accrual and disclosure decisions. The Company establishes accruals for such matters at management’s best estimate when the Company assesses that it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. The Company does not establish accruals for such matters when the Company does not believe both that it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. The Company’s assessment of whether a loss is reasonably possible, or probable, is based on its assessment of the ultimate outcome of the matter following all appeals. The Company does not include potential recoveries in its estimates of reasonably possible or probable losses. Legal fees are expensed as incurred.

The Company continues to monitor its lawsuits, regulatory inquiries, and other legal proceedings for further developments that would make the loss contingency both probable and estimable, and accordingly accruable, or that could affect the amount of accruals that have been previously established. There may continue to be exposure to loss in excess of any amount accrued. Disclosure of the nature and amount of an accrual is made when there have been sufficient legal and factual developments such that the Company’s ability to resolve the matter would not be impaired by the disclosure of the amount of accrual.

When the Company assesses it is reasonably possible or probable that a loss has been incurred, it discloses the matter. When it is possible to estimate the reasonably possible loss or range of loss above the amount accrued, if any, for the matters disclosed, that estimate is aggregated and disclosed. Disclosure is not required when an estimate of the reasonably possible loss or range of loss cannot be made.

For certain of the matters described below in the “Claims related proceedings” and “Other proceedings” subsections, the Company is able to estimate the reasonably possible loss or range of loss above the amount accrued, if any. In determining whether it is possible to estimate the reasonably possible loss or range of loss, the Company reviews and evaluates the disclosed matters, in conjunction with counsel, in light of potentially relevant factual and legal developments.

These developments may include information learned through the discovery process, rulings on dispositive motions, settlement discussions, information obtained from other sources, experience from managing these and other matters, and other rulings by courts, arbitrators or others. When the Company possesses sufficient appropriate information to develop an estimate of the reasonably possible loss or range of loss above the amount accrued, if any, that estimate is aggregated and disclosed below. There may be other disclosed matters for which a loss is probable or reasonably possible, but such an estimate is not possible. Disclosure of the estimate of the reasonably possible loss or range of loss above the amount accrued, if any, for any individual matter would only be considered when there have been sufficient legal and factual developments such that the Company’s ability to resolve the matter would not be impaired by the disclosure of the individual estimate.

The Company currently estimates that the aggregate range of reasonably possible loss in excess of the amount accrued, if any, for the disclosed matters where such an estimate is possible is zero to $75 million, pre-tax. This disclosure is not an indication of expected loss, if any. Under accounting guidance, an event is “reasonably possible” if “the chance of the future event or events occurring is more than remote but less than likely” and an event is “remote” if “the chance of the future event or events occurring is slight.” This estimate is based upon currently available information and is subject to significant judgment and a variety of assumptions, and known and unknown uncertainties. The matters underlying the estimate will change from time to time, and actual results may vary significantly from the current estimate. The estimate does not include matters or losses for which an estimate is not possible. Therefore, this estimate represents an estimate of possible loss only for certain matters meeting these criteria. It does not represent the Company’s maximum possible loss exposure. Information is provided below regarding the nature of all of the disclosed matters and, where specified, the amount, if any, of plaintiff claims associated with these loss contingencies.

Due to the complexity and scope of the matters disclosed in the “Claims related proceedings” and “Other proceedings” subsections below and the many uncertainties that exist, the ultimate outcome of these matters cannot be predicted and in the Company’s judgment, a loss, in excess of amounts accrued, if any, is not probable. In the event of an unfavorable outcome in one or more of these matters, the ultimate liability may be in excess of amounts currently accrued, if any, and may be material to the Company’s operating results or cash flows for a particular quarterly or annual period. However, based on information currently known to it, management believes that the ultimate outcome of all matters described below, as they are resolved over time, is not likely to have a material effect on the financial position of the Company.

Claims related proceedings The Company is managing various disputes in Florida that raise challenges to the Company’s practices, processes, and

procedures relating to claims for personal injury protection benefits under Florida auto policies. Medical providers continue to pursue litigation under various theories that challenge the amounts that the Company pays under the personal injury protection benefits. There are pending putative class actions and litigation involving individual plaintiffs. The Company is vigorously asserting both procedural and substantive defenses to these lawsuits.

Other proceedings The case of Jack Jimenez, et al. v. Allstate Insurance Company was filed in the United States District Court for the Central District of California on September 30, 2010. Plaintiffs allege off-the-clock wage and hour claims and other California Labor Code violations resulting from purported unpaid overtime. Plaintiffs seek recovery of unpaid compensation, liquidated damages, penalties, and attorneys’ fees and costs. The court certified a class that includes all adjusters in the state of California, except auto field adjusters, from September 29, 2006 to final judgment. Allstate’s appeals to the Ninth Circuit Court of Appeals and then to the U.S. Supreme Court did not result in decertification. As of October 2019, the parties have reached an agreement to settle the case. The settlement agreement is subject to the court’s final approval.

The stockholder derivative actions described below are disclosed pursuant to SEC disclosure requirements for these types of matters. The putative class action alleging violations of the federal securities laws is disclosed because it involves similar allegations to those made in the stockholder derivative actions.

Biefeldt / IBEW Consolidated Action. Two separately filed stockholder derivative actions have been consolidated into a single proceeding that is pending in the Circuit Court for Cook County, Illinois, Chancery Division. The original complaint in the first-filed of those actions, Biefeldt v. Wilson, et al., was filed on August 3, 2017, in that court by a plaintiff alleging that she is a stockholder of the Company. On June 29, 2018, the court granted defendants’ motion to dismiss that complaint for failure to make a pre-suit demand on the Allstate board before instituting the suit, but granted the plaintiff permission to file an amended complaint. The original complaint in IBEW Local No. 98 Pension Fund v. Wilson, et al., was filed on April 12, 2018, in the same court by another plaintiff alleging to be a stockholder of the Company. After the court issued its dismissal decision in the Biefeldt action, the plaintiffs agreed to consolidate the two actions and filed a consolidated amended complaint naming the Company’s chairman, president and chief executive officer, its former president, and certain present or former members of the board of directors. In that complaint, the plaintiffs allege that the directors and officer defendants breached their fiduciary duties to the Company in connection with allegedly material misstatements or omissions concerning the Company’s automobile insurance claim frequency statistics and the reasons for a claim frequency increase for Allstate brand auto insurance between October 2014 and August 3, 2015. The factual allegations are substantially similar to those at issue in In re The

Allstate Corp. Securities Litigation. The plaintiffs further allege that a senior officer and several outside directors engaged in stock option exercises allegedly while in possession of material nonpublic information. The plaintiffs seek, on behalf of the Company, an unspecified amount of damages and various forms of equitable relief. Defendants moved to dismiss the consolidated complaint on September 24, 2018 for failure to make a demand on the Allstate board. On May 14, 2019, the court granted the defendants’ motion to dismiss the complaint, but allowed the plaintiffs leave to file a second consolidated amended complaint by June 11, 2019. On June 3, 2019, the plaintiffs filed a motion to stay the action, or in the alternative defer the filing of the second consolidated amended complaint, to allow the plaintiffs to conduct an inspection of the Company’s books and records. The parties reached a compromise by which the Company produced certain board materials and the deadline for the plaintiffs to file the second consolidated amended complaint was extended.

In Sundquist v. Wilson, et al., another plaintiff alleging to be a stockholder of the Company filed a stockholder derivative complaint in the United States District Court for the Northern District of Illinois on May 21, 2018. The plaintiff seeks, on behalf of the Company, an unspecified amount of damages and various forms of equitable relief. The complaint names as defendants the Company’s chairman, president and chief executive officer, its former president, its former chief financial officer, who is now the Company’s vice chairman, and certain present or former members of the board of directors.

The complaint alleges breaches of fiduciary duty based on allegations similar to those asserted in In re The Allstate Corp. Securities Litigation as well as state law “misappropriation” claims based on stock option transactions by the Company’s chairman, president and chief executive officer, its former chief financial officer, who is now the Company’s vice chairman, and certain members of the board of directors. Defendants moved to dismiss and/or stay the complaint on August 7, 2018. On December 4, 2018, the court granted the defendants’ motion and stayed the case pending the resolution of the consolidated Biefeldt/IBEW matter.

In re The Allstate Corp. Securities Litigation is a certified class action filed on November 11, 2016 in the United States District Court for the Northern District of Illinois against the Company and two of its officers asserting claims under the federal securities laws. Plaintiffs allege that they purchased Allstate common stock during the class period and suffered damages as the result of the conduct alleged. Plaintiffs seek an unspecified amount of damages, costs, attorney’s fees, and other relief as the court deems appropriate. Plaintiffs allege that the Company and certain senior officers made allegedly material misstatements or omissions concerning claim frequency statistics and the reasons for a claim frequency increase for Allstate brand auto insurance between October 2014 and August 3, 2015.

Plaintiffs’ further allege that a senior officer engaged in stock option exercises during that time

allegedly while in possession of material nonpublic information about Allstate brand auto insurance claim frequency. The Company, its chairman, president and chief executive officer, and its former president are the named defendants. After the court denied their motion to dismiss on February 27, 2018, defendants answered the complaint, denying plaintiffs’ allegations that there was any misstatement or omission or other misconduct. On June 22, 2018, plaintiffs filed their motion for class certification, which was fully briefed as of January 11, 2019. On September 12, 2018, the court allowed the lead plaintiffs to amend their complaint to add the City of Providence Employee Retirement System as a proposed class representative.

The amended complaint was filed the same day. On March 26, 2019, the court granted plaintiffs’ motion for class certification and certified a class consisting of all persons who purchased Allstate common stock between October 29, 2014 and August 3, 2015. On April 9, 2019, defendants filed with the Seventh Circuit Court of Appeals a petition for permission to appeal this ruling pursuant to Federal Rule of Civil Procedure 23 (f) and the Court of Appeals granted that petition on April 25, 2019. The appeal was fully briefed as of July 31, 2019, and the Seven Circuit Court of Appeals heard oral argument on September 18, 2019.

Benefit Plans

9 Months Ended

Sep. 30, 2019

Retirement Benefits [Abstract]

Benefit Plans



Note 13	Benefit Plans

Change in accounting principle

other postretirement remeasurement gains and losses on the Condensed Consolidated Statements of Operations. This change has been applied on a retrospective basis. See Note 1 for further information regarding the impact of the change in accounting principle on the condensed consolidated financial statements.



Components of net cost (benefit) for pension and other postretirement plans
	Three months ended September 30,						Nine months ended September 30,
($ in millions)	2019			2018			2019			2018
Pension benefits
Service cost	$	30		$	27		$	86		$	83
Interest cost	58			65			185			189
Expected return on plan assets	(103		)	(103		)	(297		)	(323		)
Amortization of prior service credit	(14		)	(14		)	(42		)	(42		)
Costs and expenses	(29		)	(25		)	(68		)	(93		)
Remeasurement of projected benefit obligation	323			(38		)	1,054			(314		)
Remeasurement of plan assets	(136		)	4			(752		)	301
Remeasurement gains and losses	187			(34		)	302			(13		)
Pension net cost (benefit)	$	158		$	(59	)	$	234		$	(106	)

Postretirement benefits
Service cost	$	2		$	1		$	6		$	5
Interest cost	4			4			11			11
Amortization of prior service credit	—			(5		)	(2		)	(16		)
Costs and expenses	6			—			15			—
Remeasurement of projected benefit obligation	38			(5		)	63			(19		)
Remeasurement of plan assets	—			—			—			—
Remeasurement gains and losses	38			(5		)	63			(19		)
Postretirement net cost (benefit)	$	44		$	(5	)	$	78		$	(19	)

Pension and postretirement benefits
Costs and expenses	$	(23	)	$	(25	)	$	(53	)	$	(93	)
Remeasurement gains and losses	225			(39		)	365			(32		)
Total net cost (benefit)	$	202		$	(64	)	$	312		$	(125	)

Differences between expected and actual returns and changes in assumptions affect our pension and other postretirement obligations, plan assets and expenses.

Pension and other postretirement remeasurement losses were $225 million and $365 million for the third quarter and first nine months of 2019, respectively, compared to remeasurement gains of $39 million and $32 million for the same periods of 2018.

The losses for the third quarter and first nine months of 2019 primarily related to a decrease in the discount rate used to value the liabilities, partially offset by favorable asset performance compared to the expected return on plan assets.

The weighted average discount rate used to measure the benefit obligation decreased to 3.17% at September 30, 2019 compared to 3.53% at June 30, 2019, 3.87% at March 31, 2019 and 4.30% at December 31, 2018. Pension and other postretirement remeasurement of projected benefit obligation losses due to declines in the weighted average discount rate were $324 million and $1.04 billion for the third quarter and first nine months of 2019, respectively.

During the third quarter of 2019, the Company completed its triennial study of demographic assumptions. The Company reviewed historical experience for various long-term actuarial assumptions and methodologies that affect our pension and other postretirement obligations and incorporated updates into its best estimates of these assumptions. The update to these assumptions resulted in an increase of pension and other postretirement obligations primarily

related to the timing of participant retirements and higher levels and duration of medical coverage elected for retirees, partially offset by lower ages of employees electing medical coverage. During the second quarter of 2019, we recognized participant experience different from our demographic assumptions for mortality, terminations and retirements and the percentage of employees taking lump sum distributions. Actuarial assumption updates that affect our pension and other postretirement obligations resulted in remeasurement losses of $37 million and $81 million in the third quarter and first nine months of 2019, respectively, compared to gains of $3 million and losses of $72 million in the third quarter of 2018 and first nine months of 2018, respectively.

For the third quarter and first nine months of 2019, the actual return on plan assets was higher than our expected return by $136 million and $752 million, respectively, due to declines in interest rates which increased the fair value of our fixed income investments. The increase in the first nine months of 2019 was also due to strong equity market performance.

Supplemental Cash Flow Information

9 Months Ended

Sep. 30, 2019

Supplemental Cash Flow Information [Abstract]

Supplemental Cash Flow Information



Note 14	Supplemental Cash Flow Information

Non-cash investing activities include $187 million and $78 million related to mergers and exchanges involving third party equity securities, fixed income securities and limited partnerships, and modifications of certain mortgage loans and other investments for the nine months ended September 30, 2019 and 2018, respectively.

Non-cash financing activities include $48 million and $30 million related to the issuance of Allstate common shares for vested equity awards for the nine months ended September 30, 2019 and 2018, respectively.

Cash flows used in operating activities in the Condensed Consolidated Statements of Cash Flows include cash paid for operating leases related to amounts included in the measurement of lease

liabilities of $115 million for the nine months ended September 30, 2019. Non-cash operating activities include $534 million related to ROU assets obtained in exchange for lease obligations, including $488 million related to the adoption of new guidance related to accounting for leases, for the nine months ended September 30, 2019.

Liabilities for collateral received in conjunction with the Company’s securities lending program and over-the-counter and cleared derivatives are reported in other liabilities and accrued expenses or other investments. The accompanying cash flows are included in cash flows from operating activities in the Condensed Consolidated Statements of Cash Flows along with the activities resulting from management of the proceeds, as follows:



($ in millions)	Nine months ended September 30,
($ in millions)	2019			2018
Net change in proceeds managed
Net change in fixed income securities	$	80		$	175
Net change in short-term investments	(709		)	(454		)
Operating cash flow used	$	(629	)	$	(279	)

Net change in liabilities
Liabilities for collateral, beginning of period	$	(1,458	)	$	(1,124	)
Liabilities for collateral, end of period	(2,087		)	(1,403		)
Operating cash flow provided	$	629		$	279

Other Comprehensive Income

9 Months Ended

Sep. 30, 2019

Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]

Other Comprehensive Income



Note 15	Other Comprehensive Income



Components of other comprehensive income (loss) on a pre-tax and after-tax basis
($ in millions)	Three months ended September 30,
	2019									2018
	Pre-tax			Tax			After-tax			Pre-tax			Tax		After-tax
Unrealized net holding gains and losses arising during the period, net of related offsets	$	603		$	(127	)	$	476		$	(116	)	$	25	$	(91	)
Less: reclassification adjustment of realized capital gains and losses	136			(29		)	107			(26		)	5		(21		)
Unrealized net capital gains and losses	467			(98		)	369			(90		)	20		(70		)
Unrealized foreign currency translation adjustments	(12		)	2			(10		)	(18		)	4		(14		)
Unamortized pension and other postretirement prior service credit ⁽¹⁾	(15		)	3			(12		)	(19		)	4		(15		)
Other comprehensive income (loss)	$	440		$	(93	)	$	347		$	(127	)	$	28	$	(99	)

	Nine months ended September 30,
	2019									2018
	Pre-tax			Tax			After-tax			Pre-tax			Tax		After-tax
Unrealized net holding gains and losses arising during the period, net of related offsets	$	2,811		$	(593	)	$	2,218		$	(1,103	)	$	233	$	(870	)
Less: reclassification adjustment of realized capital gains and losses	244			(51		)	193			(129		)	27		(102		)
Unrealized net capital gains and losses	2,567			(542		)	2,025			(974		)	206		(768		)
Unrealized foreign currency translation adjustments	(1		)	—			(1		)	(28		)	6		(22		)
Unamortized pension and other postretirement prior service credit ⁽¹⁾	(44		)	9			(35		)	(58		)	13		(45		)
Other comprehensive income (loss)	$	2,522		$	(533	)	$	1,989		$	(1,060	)	$	225	$	(835	)

⁽¹⁾

Represents prior service credits reclassified out of other comprehensive income and amortized into operating costs and expenses.

General (Policies)

9 Months Ended

Sep. 30, 2019

General [Abstract]

Basis of presentation

New Accounting Pronouncements

Adopted accounting standards

Changes to significant accounting policies



Other information related to operating leases
	As of September 30, 2019
Weighted average remaining lease term (years)	6
Weighted average discount rate	3.32	%



Maturity of lease liabilities
($ in millions)	Operating leases
2019 ⁽¹⁾	$	12
2020	141
2021	111
2022	91
2023	76
2024	59
Thereafter	108
Total lease payments	$	598
Less: interest	(56		)
Present value of lease liabilities	$	542


⁽¹⁾	Excludes maturity of lease liabilities for the nine months ended September 30, 2019.

Pending accounting standards

Measurement of Credit Losses on Financial Instruments

Changes to the Disclosure Requirements for Defined Benefit Plans

Accounting for Long-Duration Insurance Contracts

adjustments to DAC and deferred sales inducement costs (“DSI”) related to unrealized gains and losses on investment securities supporting the related business.

Change in accounting principle

is to remeasure its pension and postretirement plans on a quarterly basis.

The Company believes that immediately recognizing remeasurement of projected benefit

The impacts of the adjustments on the financial statements are summarized in the following tables.



Condensed Consolidated Statements of Operations (unaudited)
	Previous accounting principle		Impact of change ⁽¹⁾			As reported
($ in millions, except per share data)	Three months ended September 30, 2019
Property and casualty insurance claims and claims expense	$	6,080	$	(29	)	$	6,051
Operating costs and expenses	1,433		(19		)	1,414
Pension and other postretirement remeasurement gains and losses	—		225			225
Restructuring and related charges	—		—			—
Total costs and expenses	9,732		177			9,909
Income from operations before income tax expense	1,337		(177		)	1,160
Income tax expense	266		(37		)	229
Net income	1,071		(140		)	931
Net income applicable to common shareholders	$	1,029	$	(140	)	$	889

Earnings per common share:
Net income applicable to common shareholders per common share - Basic	$	3.14	$	(0.43	)	$	2.71
Net income applicable to common shareholders per common share - Diluted	$	3.09	$	(0.42	)	$	2.67

	Nine months ended September 30, 2019
Property and casualty insurance claims and claims expense	$	18,285	$	(58	)	$	18,227
Operating costs and expenses	4,222		(48		)	4,174
Pension and other postretirement remeasurement gains and losses	—		365			365
Restructuring and related charges	27		—			27
Total costs and expenses	29,089		259			29,348
Income from operations before income tax expense	4,117		(259		)	3,858
Income tax expense	839		(55		)	784
Net income	3,278		(204		)	3,074
Net income applicable to common shareholders	$	3,175	$	(204	)	$	2,971

Earnings per common share:
Net income applicable to common shareholders per common share - Basic	$	9.60	$	(0.62	)	$	8.98
Net income applicable to common shareholders per common share - Diluted	$	9.46	$	(0.61	)	$	8.85



Condensed Consolidated Statements of Operations (unaudited)
	Previously reported		Impact of change			As adjusted
($ in millions, except per share data)	Three months ended September 30, 2018
Property and casualty insurance claims and claims expense	$	5,817	$	(12	)	$	5,805
Operating costs and expenses	1,510		(85		)	1,425
Pension and other postretirement remeasurement gains and losses	—		(39		)	(39		)
Restructuring and related charges	16		(3		)	13
Total costs and expenses	9,427		(139		)	9,288
Income from operations before income tax expense	1,039		139			1,178
Income tax expense	169		30			199
Net income	870		109			979
Net income applicable to common shareholders	$	833	$	109		$	942

Earnings per common share:
Net income applicable to common shareholders per common share - Basic	$	2.41	$	0.31		$	2.72
Net income applicable to common shareholders per common share - Diluted	$	2.37	$	0.31		$	2.68

	Nine months ended September 30, 2018
Property and casualty insurance claims and claims expense	$	16,758	$	(47	)	$	16,711
Operating costs and expenses	4,227		(141		)	4,086
Pension and other postretirement remeasurement gains and losses	—		(32		)	(32		)
Restructuring and related charges	65		(10		)	55
Total costs and expenses	27,230		(230		)	27,000
Income from operations before income tax expense	3,108		230			3,338
Income tax expense	587		49			636
Net income	2,521		181			2,702
Net income applicable to common shareholders	$	2,416	$	181		$	2,597

Earnings per common share:
Net income applicable to common shareholders per common share - Basic	$	6.91	$	0.52		$	7.43
Net income applicable to common shareholders per common share - Diluted	$	6.80	$	0.51		$	7.31



Condensed Consolidated Statements of Comprehensive Income (unaudited)
	Previous accounting principle			Impact of change			As reported
($ in millions)	Three months ended September 30, 2019
Net income	$	1,071		$	(140	)	$	931
Other comprehensive income (loss), after-tax
Changes in:
Unrealized net capital gains and losses	369			—			369
Unrealized foreign currency translation adjustments	(12		)	2			(10		)
Unrecognized pension and other postretirement benefit cost⁽¹⁾	20			(32		)	(12		)
Other comprehensive income, after-tax	377			(30		)	347
Comprehensive income	$	1,448		$	(170	)	$	1,278

	Nine months ended September 30, 2019
Net income	$	3,278		$	(204	)	$	3,074
Other comprehensive income (loss), after-tax
Changes in:
Unrealized net capital gains and losses	2,025			—			2,025
Unrealized foreign currency translation adjustments	2			(3		)	(1		)
Unrecognized pension and other postretirement benefit cost⁽¹⁾	155			(190		)	(35		)
Other comprehensive income, after-tax	2,182			(193		)	1,989
Comprehensive income	$	5,460		$	(397	)	$	5,063

⁽¹⁾ Financial statement line item has been updated to “Unamortized pension and other postretirement prior service credit”.



Condensed Consolidated Statements of Comprehensive Income (unaudited)
	Previously reported			Impact of change			As adjusted
($ in millions)	Three months ended September 30, 2018
Net income	$	870		$	109		$	979
Other comprehensive income (loss), after-tax
Changes in:
Unrealized net capital gains and losses	(70		)	—			(70		)
Unrealized foreign currency translation adjustments	(14		)	—			(14		)
Unrecognized pension and other postretirement benefit cost	68			(83		)	(15		)
Other comprehensive loss, after-tax	(16		)	(83		)	(99		)
Comprehensive income	$	854		$	26		$	880

	Nine months ended September 30, 2018
Net income	$	2,521		$	181		$	2,702
Other comprehensive income (loss), after-tax
Changes in:
Unrealized net capital gains and losses	(768		)	—			(768		)
Unrealized foreign currency translation adjustments	(25		)	3			(22		)
Unrecognized pension and other postretirement benefit cost	113			(158		)	(45		)
Other comprehensive loss, after-tax	(680		)	(155		)	(835		)
Comprehensive income	$	1,841		$	26		$	1,867



Condensed Consolidated Statements of Financial Position (unaudited)
	Previous accounting principle			Impact of change			As reported
($ in millions)	September 30, 2019
Deferred income taxes	$	1,185		$	(106	)	$	1,079
Other liabilities and accrued expenses	9,226			503			9,729
Total liabilities	94,536			397			94,933
Retained income	48,406			(1,879		)	46,527
Unrealized foreign currency translation adjustments	(62		)	12			(50		)
Unrecognized pension and other postretirement benefit cost	(1,336		)	1,470			134
Total AOCI	625			1,482			2,107
Total shareholders’ equity	$	26,537		$	(397	)	$	26,140

	Previously reported			Impact of change			As adjusted
($ in millions)	December 31, 2018
Retained income	$	45,708		$	(1,675	)	$	44,033
Unrealized foreign currency translation adjustments	(64		)	15			(49		)
Unrecognized pension and other postretirement benefit cost	(1,491		)	1,660			169
Total AOCI	$	(1,557	)	$	1,675		$	118



Condensed Consolidated Statements of Shareholders’ Equity (unaudited)
	Previous accounting principle			Impact of change			As reported
($ in millions)	Three months ended September 30, 2019
Retained income
Balance, beginning of period	$	47,542		$	(1,739	)	$	45,803
Cumulative effect of change in accounting principle	—			—			—
Net income	1,071			(140		)	931
Dividends on common stock	(165		)	—			(165		)
Dividends on preferred stock	(42		)	—			(42		)
Balance, end of period	48,406			(1,879		)	46,527

Accumulated other comprehensive income (loss)
Balance, beginning of period	248			1,512			1,760
Cumulative effect of change in accounting principle	—			—			—
Change in unrealized net capital gains and losses	369			—			369
Change in unrealized foreign currency translation adjustments	(12		)	2			(10		)
Change in unrecognized pension and other postretirement benefit cost ⁽¹⁾	20			(32		)	(12		)
Balance, end of period	625			1,482			2,107
Total shareholders’ equity	$	26,537		$	(397	)	$	26,140

	Nine months ended September 30, 2019
Retained income
Balance, beginning of period	$	45,708		$	(1,675	)	$	44,033
Cumulative effect of change in accounting principle	21			—			21
Net income	3,278			(204		)	3,074
Dividends on common stock	(498		)	—			(498		)
Dividends on preferred stock	(103		)	—			(103		)
Balance, end of period	48,406			(1,879		)	46,527

Accumulated other comprehensive income (loss)
Balance, beginning of period	(1,557		)	1,675			118
Cumulative effect of change in accounting principle	—			—			—
Change in unrealized net capital gains and losses	2,025			—			2,025
Change in unrealized foreign currency translation adjustments	2			(3		)	(1		)
Change in unrecognized pension and other postretirement benefit cost ⁽¹⁾	155			(190		)	(35		)
Balance, end of period	625			1,482			2,107
Total shareholders’ equity	$	26,537		$	(397	)	$	26,140

⁽¹⁾ Financial statement line item has been updated to “Change in unamortized pension and other postretirement prior service credit”.



Condensed Consolidated Statements of Shareholders’ Equity (unaudited)
	Previously reported			Impact of change			As adjusted
($ in millions)	Three months ended September 30, 2018
Retained income
Balance, beginning of period	$	45,508		$	(1,511	)	$	43,997
Cumulative effect of change in accounting principle	—			—			—
Net income	870			109			979
Dividends on common stock	(163		)	—			(163		)
Dividends on preferred stock	(37		)	—			(37		)
Balance, end of period	46,178			(1,402		)	44,776

Accumulated other comprehensive income (loss)
Balance, beginning of period	(1,268		)	1,511			243
Cumulative effect of change in accounting principle	—			—			—
Change in unrealized net capital gains and losses	(70		)	—			(70		)
Change in unrealized foreign currency translation adjustments	(14		)	—			(14		)
Change in unrecognized pension and other postretirement benefit cost	68			(83		)	(15		)
Balance, end of period	(1,284		)	1,428			144
Total shareholders’ equity	$	23,633		$	26		$	23,659

	Nine months ended September 30, 2018
Retained income
Balance, beginning of period	$	43,162		$	(1,583	)	$	41,579
Cumulative effect of change in accounting principle	1,088			—			1,088
Net income	2,521			181			2,702
Dividends on common stock	(488		)	—			(488		)
Dividends on preferred stock	(105		)	—			(105		)
Balance, end of period	46,178			(1,402		)	44,776

Accumulated other comprehensive income (loss)
Balance, beginning of period	306			1,583			1,889
Cumulative effect of change in accounting principle	(910		)	—			(910		)
Change in unrealized net capital gains and losses	(768		)	—			(768		)
Change in unrealized foreign currency translation adjustments	(25		)	3			(22		)
Change in unrecognized pension and other postretirement benefit cost	113			(158		)	(45		)
Balance, end of period	(1,284		)	1,428			144
Total shareholders’ equity	$	23,633		$	26		$	23,659



Condensed Consolidated Statements of Cash Flows (unaudited)
	Previous accounting principle			Impact of change			As reported
($ in millions)	Nine months ended September 30, 2019
Cash flows from operating activities
Net income	$	3,278		$	(204	)	$	3,074
Adjustments to reconcile net income to net cash provided by operating activities:
Pension and other postretirement remeasurement gains and losses	—			365			365
Income taxes	309			(55		)	254
Other operating assets and liabilities	(75		)	(106		)	(181		)
Net cash provided by operating activities	$	3,895		$	—		$	3,895

	Previously reported			Impact of change			As adjusted
($ in millions)	Nine months ended September 30, 2018
Cash flows from operating activities
Net income	$	2,521		$	181		$	2,702
Adjustments to reconcile net income to net cash provided by operating activities:
Pension and other postretirement remeasurement gains and losses	—			(32		)	(32		)
Income taxes	(227		)	49			(178		)
Other operating assets and liabilities	533			(198		)	335
Net cash provided by operating activities	$	3,818		$	—		$	3,818

Fair Value Measurement

Level 1: Assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that the Company can access.

Level 2: Assets and liabilities whose values are based on the following:


(a)	Quoted prices for similar assets or liabilities in active markets;


(b)	Quoted prices for identical or similar assets or liabilities in markets that are not active; or


(c)	Valuation models whose inputs are observable, directly or indirectly, for substantially the full term of the asset or liability.

remeasurement is reflected in the condensed consolidated financial statements.

Summary of significant valuation techniques for assets and liabilities measured at fair value on a recurring basis

Level 1 measurements


•	Fixed income securities: Comprise certain U.S. Treasury fixed income securities. Valuation is based on unadjusted quoted prices for identical assets in active markets that the Company can access.


•	Equity securities: Comprise actively traded, exchange-listed equity securities. Valuation is based on unadjusted quoted prices for identical assets in active markets that the Company can access.


•	Short-term: Comprise U.S. Treasury bills valued based on unadjusted quoted prices for identical assets in active markets that the Company can access and actively traded money market funds that have daily quoted net asset values for identical assets that the Company can access.


•	Separate account assets: Comprise actively traded mutual funds that have daily quoted net asset values that are readily determinable for identical assets that the Company can access. Net asset values for the actively traded mutual funds in which the separate account assets are invested are obtained daily from the fund managers.


•	Other assets: Comprise free-standing exchange-listed derivatives that are valued based on unadjusted quoted prices for identical assets in active markets.

Level 2 measurements


•	Fixed income securities:

Municipal: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields and credit spreads.


•	Equity securities: The primary inputs to the valuation include quoted prices or quoted net asset values for identical or similar assets in markets that are not active.


•	Short-term: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields and credit spreads.


•	Other investments: Free-standing exchange listed derivatives that are not actively traded are valued based on quoted prices for identical instruments in markets that are not active.

Level 3 measurements


•	Fixed income securities:


•	Equity securities: The primary inputs to the valuation include quoted prices or quoted net asset values for identical or similar assets in markets that exhibit less liquidity relative to those markets supporting Level 2 fair value measurements.


•	Short-term: For certain short-term investments, amortized cost is used as the best estimate of fair value.


•	Other investments: Certain OTC derivatives, such as interest rate caps, certain credit default swaps

•

Assets and liabilities measured at fair value on a non-recurring basis

Investments excluded from the fair value hierarchy

General (Tables)

9 Months Ended

Sep. 30, 2019

General [Abstract]

Lease, cost



Other information related to operating leases
	As of September 30, 2019
Weighted average remaining lease term (years)	6
Weighted average discount rate	3.32	%

Operating lease, liability, maturity



Maturity of lease liabilities
($ in millions)	Operating leases
2019 ⁽¹⁾	$	12
2020	141
2021	111
2022	91
2023	76
2024	59
Thereafter	108
Total lease payments	$	598
Less: interest	(56		)
Present value of lease liabilities	$	542

⁽¹⁾

Excludes maturity of lease liabilities for the nine months ended September 30, 2019.

Schedule changes in accounting principles

The impacts of the adjustments on the financial statements are summarized in the following tables.



Condensed Consolidated Statements of Operations (unaudited)
	Previous accounting principle		Impact of change ⁽¹⁾			As reported
($ in millions, except per share data)	Three months ended September 30, 2019
Property and casualty insurance claims and claims expense	$	6,080	$	(29	)	$	6,051
Operating costs and expenses	1,433		(19		)	1,414
Pension and other postretirement remeasurement gains and losses	—		225			225
Restructuring and related charges	—		—			—
Total costs and expenses	9,732		177			9,909
Income from operations before income tax expense	1,337		(177		)	1,160
Income tax expense	266		(37		)	229
Net income	1,071		(140		)	931
Net income applicable to common shareholders	$	1,029	$	(140	)	$	889

Earnings per common share:
Net income applicable to common shareholders per common share - Basic	$	3.14	$	(0.43	)	$	2.71
Net income applicable to common shareholders per common share - Diluted	$	3.09	$	(0.42	)	$	2.67

	Nine months ended September 30, 2019
Property and casualty insurance claims and claims expense	$	18,285	$	(58	)	$	18,227
Operating costs and expenses	4,222		(48		)	4,174
Pension and other postretirement remeasurement gains and losses	—		365			365
Restructuring and related charges	27		—			27
Total costs and expenses	29,089		259			29,348
Income from operations before income tax expense	4,117		(259		)	3,858
Income tax expense	839		(55		)	784
Net income	3,278		(204		)	3,074
Net income applicable to common shareholders	$	3,175	$	(204	)	$	2,971

Earnings per common share:
Net income applicable to common shareholders per common share - Basic	$	9.60	$	(0.62	)	$	8.98
Net income applicable to common shareholders per common share - Diluted	$	9.46	$	(0.61	)	$	8.85



Condensed Consolidated Statements of Operations (unaudited)
	Previously reported		Impact of change			As adjusted
($ in millions, except per share data)	Three months ended September 30, 2018
Property and casualty insurance claims and claims expense	$	5,817	$	(12	)	$	5,805
Operating costs and expenses	1,510		(85		)	1,425
Pension and other postretirement remeasurement gains and losses	—		(39		)	(39		)
Restructuring and related charges	16		(3		)	13
Total costs and expenses	9,427		(139		)	9,288
Income from operations before income tax expense	1,039		139			1,178
Income tax expense	169		30			199
Net income	870		109			979
Net income applicable to common shareholders	$	833	$	109		$	942

Earnings per common share:
Net income applicable to common shareholders per common share - Basic	$	2.41	$	0.31		$	2.72
Net income applicable to common shareholders per common share - Diluted	$	2.37	$	0.31		$	2.68

	Nine months ended September 30, 2018
Property and casualty insurance claims and claims expense	$	16,758	$	(47	)	$	16,711
Operating costs and expenses	4,227		(141		)	4,086
Pension and other postretirement remeasurement gains and losses	—		(32		)	(32		)
Restructuring and related charges	65		(10		)	55
Total costs and expenses	27,230		(230		)	27,000
Income from operations before income tax expense	3,108		230			3,338
Income tax expense	587		49			636
Net income	2,521		181			2,702
Net income applicable to common shareholders	$	2,416	$	181		$	2,597

Earnings per common share:
Net income applicable to common shareholders per common share - Basic	$	6.91	$	0.52		$	7.43
Net income applicable to common shareholders per common share - Diluted	$	6.80	$	0.51		$	7.31



Condensed Consolidated Statements of Comprehensive Income (unaudited)
	Previous accounting principle			Impact of change			As reported
($ in millions)	Three months ended September 30, 2019
Net income	$	1,071		$	(140	)	$	931
Other comprehensive income (loss), after-tax
Changes in:
Unrealized net capital gains and losses	369			—			369
Unrealized foreign currency translation adjustments	(12		)	2			(10		)
Unrecognized pension and other postretirement benefit cost⁽¹⁾	20			(32		)	(12		)
Other comprehensive income, after-tax	377			(30		)	347
Comprehensive income	$	1,448		$	(170	)	$	1,278

	Nine months ended September 30, 2019
Net income	$	3,278		$	(204	)	$	3,074
Other comprehensive income (loss), after-tax
Changes in:
Unrealized net capital gains and losses	2,025			—			2,025
Unrealized foreign currency translation adjustments	2			(3		)	(1		)
Unrecognized pension and other postretirement benefit cost⁽¹⁾	155			(190		)	(35		)
Other comprehensive income, after-tax	2,182			(193		)	1,989
Comprehensive income	$	5,460		$	(397	)	$	5,063

⁽¹⁾ Financial statement line item has been updated to “Unamortized pension and other postretirement prior service credit”.



Condensed Consolidated Statements of Comprehensive Income (unaudited)
	Previously reported			Impact of change			As adjusted
($ in millions)	Three months ended September 30, 2018
Net income	$	870		$	109		$	979
Other comprehensive income (loss), after-tax
Changes in:
Unrealized net capital gains and losses	(70		)	—			(70		)
Unrealized foreign currency translation adjustments	(14		)	—			(14		)
Unrecognized pension and other postretirement benefit cost	68			(83		)	(15		)
Other comprehensive loss, after-tax	(16		)	(83		)	(99		)
Comprehensive income	$	854		$	26		$	880

	Nine months ended September 30, 2018
Net income	$	2,521		$	181		$	2,702
Other comprehensive income (loss), after-tax
Changes in:
Unrealized net capital gains and losses	(768		)	—			(768		)
Unrealized foreign currency translation adjustments	(25		)	3			(22		)
Unrecognized pension and other postretirement benefit cost	113			(158		)	(45		)
Other comprehensive loss, after-tax	(680		)	(155		)	(835		)
Comprehensive income	$	1,841		$	26		$	1,867



Condensed Consolidated Statements of Financial Position (unaudited)
	Previous accounting principle			Impact of change			As reported
($ in millions)	September 30, 2019
Deferred income taxes	$	1,185		$	(106	)	$	1,079
Other liabilities and accrued expenses	9,226			503			9,729
Total liabilities	94,536			397			94,933
Retained income	48,406			(1,879		)	46,527
Unrealized foreign currency translation adjustments	(62		)	12			(50		)
Unrecognized pension and other postretirement benefit cost	(1,336		)	1,470			134
Total AOCI	625			1,482			2,107
Total shareholders’ equity	$	26,537		$	(397	)	$	26,140

	Previously reported			Impact of change			As adjusted
($ in millions)	December 31, 2018
Retained income	$	45,708		$	(1,675	)	$	44,033
Unrealized foreign currency translation adjustments	(64		)	15			(49		)
Unrecognized pension and other postretirement benefit cost	(1,491		)	1,660			169
Total AOCI	$	(1,557	)	$	1,675		$	118



Condensed Consolidated Statements of Shareholders’ Equity (unaudited)
	Previous accounting principle			Impact of change			As reported
($ in millions)	Three months ended September 30, 2019
Retained income
Balance, beginning of period	$	47,542		$	(1,739	)	$	45,803
Cumulative effect of change in accounting principle	—			—			—
Net income	1,071			(140		)	931
Dividends on common stock	(165		)	—			(165		)
Dividends on preferred stock	(42		)	—			(42		)
Balance, end of period	48,406			(1,879		)	46,527

Accumulated other comprehensive income (loss)
Balance, beginning of period	248			1,512			1,760
Cumulative effect of change in accounting principle	—			—			—
Change in unrealized net capital gains and losses	369			—			369
Change in unrealized foreign currency translation adjustments	(12		)	2			(10		)
Change in unrecognized pension and other postretirement benefit cost ⁽¹⁾	20			(32		)	(12		)
Balance, end of period	625			1,482			2,107
Total shareholders’ equity	$	26,537		$	(397	)	$	26,140

	Nine months ended September 30, 2019
Retained income
Balance, beginning of period	$	45,708		$	(1,675	)	$	44,033
Cumulative effect of change in accounting principle	21			—			21
Net income	3,278			(204		)	3,074
Dividends on common stock	(498		)	—			(498		)
Dividends on preferred stock	(103		)	—			(103		)
Balance, end of period	48,406			(1,879		)	46,527

Accumulated other comprehensive income (loss)
Balance, beginning of period	(1,557		)	1,675			118
Cumulative effect of change in accounting principle	—			—			—
Change in unrealized net capital gains and losses	2,025			—			2,025
Change in unrealized foreign currency translation adjustments	2			(3		)	(1		)
Change in unrecognized pension and other postretirement benefit cost ⁽¹⁾	155			(190		)	(35		)
Balance, end of period	625			1,482			2,107
Total shareholders’ equity	$	26,537		$	(397	)	$	26,140

⁽¹⁾ Financial statement line item has been updated to “Change in unamortized pension and other postretirement prior service credit”.



Condensed Consolidated Statements of Shareholders’ Equity (unaudited)
	Previously reported			Impact of change			As adjusted
($ in millions)	Three months ended September 30, 2018
Retained income
Balance, beginning of period	$	45,508		$	(1,511	)	$	43,997
Cumulative effect of change in accounting principle	—			—			—
Net income	870			109			979
Dividends on common stock	(163		)	—			(163		)
Dividends on preferred stock	(37		)	—			(37		)
Balance, end of period	46,178			(1,402		)	44,776

Accumulated other comprehensive income (loss)
Balance, beginning of period	(1,268		)	1,511			243
Cumulative effect of change in accounting principle	—			—			—
Change in unrealized net capital gains and losses	(70		)	—			(70		)
Change in unrealized foreign currency translation adjustments	(14		)	—			(14		)
Change in unrecognized pension and other postretirement benefit cost	68			(83		)	(15		)
Balance, end of period	(1,284		)	1,428			144
Total shareholders’ equity	$	23,633		$	26		$	23,659

	Nine months ended September 30, 2018
Retained income
Balance, beginning of period	$	43,162		$	(1,583	)	$	41,579
Cumulative effect of change in accounting principle	1,088			—			1,088
Net income	2,521			181			2,702
Dividends on common stock	(488		)	—			(488		)
Dividends on preferred stock	(105		)	—			(105		)
Balance, end of period	46,178			(1,402		)	44,776

Accumulated other comprehensive income (loss)
Balance, beginning of period	306			1,583			1,889
Cumulative effect of change in accounting principle	(910		)	—			(910		)
Change in unrealized net capital gains and losses	(768		)	—			(768		)
Change in unrealized foreign currency translation adjustments	(25		)	3			(22		)
Change in unrecognized pension and other postretirement benefit cost	113			(158		)	(45		)
Balance, end of period	(1,284		)	1,428			144
Total shareholders’ equity	$	23,633		$	26		$	23,659



Condensed Consolidated Statements of Cash Flows (unaudited)
	Previous accounting principle			Impact of change			As reported
($ in millions)	Nine months ended September 30, 2019
Cash flows from operating activities
Net income	$	3,278		$	(204	)	$	3,074
Adjustments to reconcile net income to net cash provided by operating activities:
Pension and other postretirement remeasurement gains and losses	—			365			365
Income taxes	309			(55		)	254
Other operating assets and liabilities	(75		)	(106		)	(181		)
Net cash provided by operating activities	$	3,895		$	—		$	3,895

	Previously reported			Impact of change			As adjusted
($ in millions)	Nine months ended September 30, 2018
Cash flows from operating activities
Net income	$	2,521		$	181		$	2,702
Adjustments to reconcile net income to net cash provided by operating activities:
Pension and other postretirement remeasurement gains and losses	—			(32		)	(32		)
Income taxes	(227		)	49			(178		)
Other operating assets and liabilities	533			(198		)	335
Net cash provided by operating activities	$	3,818		$	—		$	3,818

Earnings per Common Share (Tables)

9 Months Ended

Sep. 30, 2019

Earnings Per Share [Abstract]

Computation of basic and diluted earnings per common share



Computation of basic and diluted earnings per common share
(In millions, except per share data)	Three months ended September 30,				Nine months ended September 30,
(In millions, except per share data)	2019		2018		2019		2018
Numerator:
Net income	$	931	$	979	$	3,074	$	2,702
Less: Preferred stock dividends	42		37		103		105
Net income applicable to common shareholders	$	889	$	942	$	2,971	$	2,597

Denominator:
Weighted average common shares outstanding	327.7		346.0		330.8		349.7
Effect of dilutive potential common shares:
Stock options	3.4		3.8		3.2		3.8
Restricted stock units (non-participating) and performance stock awards	1.9		1.9		1.7		1.9
Weighted average common and dilutive potential common shares outstanding	333.0		351.7		335.7		355.4

Earnings per common share - Basic	$	2.71	$	2.72	$	8.98	$	7.43
Earnings per common share - Diluted	$	2.67	$	2.68	$	8.85	$	7.31

Anti-dilutive options excluded from diluted earnings per common share	1.8		2.3		3.7		1.9

Reportable Segments (Tables)

9 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

Schedule of business segments revenue disclosures



Reportable segments revenue information
($ in millions)	Three months ended September 30,						Nine months ended September 30,
	2019			2018			2019			2018
Property-Liability
Insurance premiums
Auto	$	6,080		$	5,798		$	18,045		$	17,094
Homeowners	1,997			1,891			5,890			5,603
Other personal lines	469			455			1,390			1,354
Commercial lines	236			176			645			477
Allstate Protection	8,782			8,320			25,970			24,528
Discontinued Lines and Coverages	—			—			—			—
Total Property-Liability insurance premiums	8,782			8,320			25,970			24,528
Other revenue	195			192			561			550
Net investment income	448			410			1,210			1,100
Realized capital gains and losses	163			126			916			16
Total Property-Liability	9,588			9,048			28,657			26,194

Service Businesses
Consumer product protection plans	163			125			461			369
Roadside assistance	57			66			183			198
Finance and insurance products	92			84			268			246
Intersegment premiums and service fees ⁽¹⁾	44			31			110			89
Other revenue	47			16			142			48
Net investment income	11			7			30			18
Realized capital gains and losses	4			—			21			(6		)
Total Service Businesses	418			329			1,215			962

Allstate Life
Traditional life insurance premiums	155			149			465			443
Accident and health insurance premiums	—			—			1			1
Interest-sensitive life insurance contract charges	176			173			535			531
Other revenue	31			30			91			84
Net investment income	128			128			380			380
Realized capital gains and losses	5			(3		)	1			(9		)
Total Allstate Life	495			477			1,473			1,430

Allstate Benefits
Traditional life insurance premiums	12			13			31			32
Accident and health insurance premiums	250			246			746			739
Interest-sensitive life insurance contract charges	29			26			86			83
Net investment income	21			19			61			57
Realized capital gains and losses	2			2			8			—
Total Allstate Benefits	314			306			932			911

Allstate Annuities
Fixed annuities contract charges	3			5			10			11
Net investment income	251			260			737			843
Realized capital gains and losses	20			51			224			28
Total Allstate Annuities	274			316			971			882

Corporate and Other
Net investment income	21			20			52			56
Realized capital gains and losses	3			—			13			(12		)
Total Corporate and Other	24			20			65			44

Intersegment eliminations ⁽¹⁾	(44		)	(31		)	(110		)	(89		)
Consolidated revenues	$	11,069		$	10,465		$	33,203		$	30,334

⁽¹⁾

Intersegment insurance premiums and service fees are primarily related to Arity and Allstate Roadside Services and are eliminated in the condensed consolidated financial statements.

Schedule of business segments net income disclosures



Reportable segments financial performance
	Three months ended September 30,						Nine months ended September 30,
($ in millions)	2019			2018			2019			2018
Property-Liability
Allstate Protection	$	836		$	587		$	1,909		$	2,053
Discontinued Lines and Coverages	(99		)	(80		)	(105		)	(86		)
Total underwriting income	737			507			1,804			1,967
Net investment income	448			410			1,210			1,100
Income tax expense on operations	(236		)	(185		)	(617		)	(628		)
Realized capital gains and losses, after-tax	127			103			724			16
Tax Legislation expense	—			(3		)	—			(3		)
Property-Liability net income applicable to common shareholders	1,076			832			3,121			2,452

Service Businesses
Adjusted net income	8			1			35			—
Realized capital gains and losses, after-tax	4			(1		)	17			(5		)
Amortization of purchased intangibles, after-tax	(25		)	(16		)	(74		)	(48		)
Impairment of purchased intangibles, after-tax	—			—			(43		)	—
Tax Legislation expense	—			(4		)	—			(4		)
Service Businesses net loss applicable to common shareholders	(13		)	(20		)	(65		)	(57		)

Allstate Life
Adjusted net income	44			75			185			226
Realized capital gains and losses, after-tax	4			(3		)	—			(7		)
Valuation changes on embedded derivatives not hedged, after-tax	(9		)	—			(9		)	—
DAC and DSI amortization related to realized capital gains and losses, after-tax	1			(1		)	(2		)	(6		)
Tax Legislation expense	—			(16		)	—			(16		)
Allstate Life net income applicable to common shareholders	40			55			174			197

Allstate Benefits
Adjusted net income	31			33			99			98
Realized capital gains and losses, after-tax	2			2			7			—
Allstate Benefits net income applicable to common shareholders	33			35			106			98

Allstate Annuities
Adjusted net income	16			20			43			99
Realized capital gains and losses, after-tax	16			40			177			22
Valuation changes on embedded derivatives not hedged, after-tax	(1		)	1			(6		)	5
Gain on disposition of operations, after-tax	—			1			2			3
Tax Legislation benefit	—			69			—			69
Allstate Annuities net income applicable to common shareholders	31			131			216			198

Corporate and Other
Adjusted net loss	(101		)	(106		)	(302		)	(291		)
Realized capital gains and losses, after-tax	2			—			10			(10		)
Pension and other postretirement remeasurement gains and losses, after-tax	(179		)	30			(289		)	25
Tax Legislation expense	—			(15		)	—			(15		)
Consolidated and Other net loss applicable to common shareholders	(278		)	(91		)	(581		)	(291		)

Consolidated net income applicable to common shareholders	$	889		$	942		$	2,971		$	2,597

Investments (Tables)

9 Months Ended

Sep. 30, 2019

Investments [Abstract]

Schedule for fixed income securities at amortized cost, gross unrealized gains and losses and fair value



Amortized cost, gross unrealized gains (losses) and fair value for fixed income securities
($ in millions)	Amortized cost		Gross unrealized					Fair value
($ in millions)	Amortized cost		Gains		Losses			Fair value
September 30, 2019
U.S. government and agencies	$	3,855	$	257	$	(1	)	$	4,111
Municipal	8,227		615		(4		)	8,838
Corporate	42,013		2,075		(70		)	44,018
Foreign government	972		24		(3		)	993
Asset-backed securities (“ABS”)	818		10		(6		)	822
Residential mortgage-backed securities (“RMBS”)	301		92		(1		)	392
Commercial mortgage-backed securities (“CMBS”)	57		8		(1		)	64
Redeemable preferred stock	20		1		—			21
Total fixed income securities	$	56,263	$	3,082	$	(86	)	$	59,259

December 31, 2018
U.S. government and agencies	$	5,386	$	137	$	(6	)	$	5,517
Municipal	8,963		249		(43		)	9,169
Corporate	40,536		490		(890		)	40,136
Foreign government	739		13		(5		)	747
ABS	1,049		6		(10		)	1,045
RMBS	377		89		(2		)	464
CMBS	63		8		(1		)	70
Redeemable preferred stock	21		1		—			22
Total fixed income securities	$	57,134	$	993	$	(957	)	$	57,170

Schedule for fixed income securities based on contractual maturities



Scheduled maturities for fixed income securities
($ in millions)	As of September 30, 2019
($ in millions)	Amortized cost		Fair value
Due in one year or less	$	3,026	$	3,050
Due after one year through five years	25,251		25,913
Due after five years through ten years	17,315		18,290
Due after ten years	9,495		10,728
	55,087		57,981
ABS, RMBS and CMBS	1,176		1,278
Total	$	56,263	$	59,259

Schedule of net investment income



Net investment income
($ in millions)	Three months ended September 30,						Nine months ended September 30,
($ in millions)	2019			2018			2019			2018
Fixed income securities	$	546		$	527		$	1,627		$	1,544
Equity securities	57			35			155			130
Mortgage loans	54			52			161			163
Limited partnership interests	197			210			460			563
Short-term investments	28			19			80			50
Other	66			71			196			205
Investment income, before expense	948			914			2,679			2,655
Investment expense	(68		)	(70		)	(209		)	(201		)
Net investment income	$	880		$	844		$	2,470		$	2,454

Schedule of realized capital gains and losses by asset type



Realized capital gains (losses) by asset type
($ in millions)	Three months ended September 30,						Nine months ended September 30,
($ in millions)	2019			2018			2019		2018
Fixed income securities	$	147		$	(30	)	$	290	$	(153	)
Equity securities	40			223			771		204
Mortgage loans	—			—			—		2
Limited partnership interests	(18		)	(23		)	75		(56		)
Derivatives	40			5			16		20
Other	(12		)	1			31		—
Realized capital gains and losses	$	197		$	176		$	1,183	$	17

Schedule of realized capital gains and losses by transaction type



Realized capital gains (losses) by transaction type
($ in millions)	Three months ended September 30,						Nine months ended September 30,
($ in millions)	2019			2018			2019			2018
Impairment write-downs	$	(14	)	$	(5	)	$	(43	)	$	(10	)
Sales	147			(22		)	359			(139		)
Valuation of equity investments ⁽¹⁾	24			198			851			149
Valuation and settlements of derivative instruments	40			5			16			17
Realized capital gains and losses	$	197		$	176		$	1,183		$	17

⁽¹⁾

Includes valuation of equity securities and certain limited partnership interests where the underlying assets are predominately public equity securities

Valuation changes included in net income for investments



Net appreciation (decline) recognized in net income
($ in millions)	Three months ended September 30,				Nine months ended September 30,
($ in millions)	2019		2018		2019		2018
Equity securities	$	107	$	234	$	736	$	321
Limited partnership interests carried at fair value	49		75		109		181
Total	$	156	$	309	$	845	$	502

Schedule of other-than-temporary impairment losses by asset type



OTTI losses by asset type
($ in millions)	Three months ended									Three months ended
	September 30, 2019									September 30, 2018
	Gross			Included in OCI			Net			Gross			Included in OCI			Net
Fixed income securities:
Municipal	$	(2	)	$	2		$	—		$	—		$	—		$	—
Corporate	$	—		$	—		$	—		$	—		$	—		$	—
ABS	—			—			—			—			(1		)	(1		)
RMBS	—			—			—			—			—			—
CMBS	(1		)	—			(1		)	(2		)	—			(2		)
Total fixed income securities	(3		)	2			(1		)	(2		)	(1		)	(3		)
Limited partnership interests	(1		)	—			(1		)	(2		)	—			(2		)
Other	(12		)	—			(12		)	—			—			—
OTTI losses	$	(16	)	$	2		$	(14	)	$	(4	)	$	(1	)	$	(5	)

	Nine months ended									Nine months ended
	September 30, 2019									September 30, 2018
	Gross			Included in OCI			Net			Gross			Included in OCI			Net
Fixed income securities:
Municipal	$	(2	)	$	2		$	—		$	—		$	—		$	—
Corporate	$	(5	)	$	(2	)	$	(7	)	$	—		$	—		$	—
ABS	(3		)	—			(3		)	(1		)	(1		)	(2		)
RMBS	—			(1		)	(1		)	(1		)	—			(1		)
CMBS	(3		)	2			(1		)	(2		)	(1		)	(3		)
Total fixed income securities	(13		)	1			(12		)	(4		)	(2		)	(6		)
Limited partnership interests	(4		)	—			(4		)	(3		)	—			(3		)
Other	(27		)	—			(27		)	(1		)	—			(1		)
OTTI losses	$	(44	)	$	1		$	(43	)	$	(8	)	$	(2	)	$	(10	)

Schedule of other-than-temporary impairment losses on fixed income securities included in Accumulated Other Comprehensive Income



OTTI losses included in AOCI at the time of impairment for fixed income securities which were not included in earnings
($ in millions)	September 30, 2019			December 31, 2018
Municipal	$	(7	)	$	(5	)
Corporate	—			(2		)
ABS	(10		)	(10		)
RMBS	(56		)	(67		)
CMBS	(3		)	(2		)
Total	$	(76	)	$	(86	)

Schedule of credit losses on fixed income securities recognized in earnings



Rollforward of cumulative credit losses recognized in earnings for fixed income securities held as of September 30,
($ in millions)	Three months ended September 30,						Nine months ended September 30,
($ in millions)	2019			2018			2019			2018
Beginning balance	$	(208	)	$	(206	)	$	(204	)	$	(226	)
Additional credit loss for securities previously other-than-temporarily impaired	(1		)	(3		)	(8		)	(5		)
Additional credit loss for securities not previously other-than-temporarily impaired	—			—			(4		)	(1		)
Reduction in credit loss for securities disposed or collected	14			4			21			26
Change in credit loss due to accretion of increase in cash flows	—			—			—			1
Ending balance	$	(195	)	$	(205	)	$	(195	)	$	(205	)

Schedule of unrealized net capital gains and losses



Unrealized net capital gains and losses included in AOCI
($ in millions)	Fair value		Gross unrealized					Unrealized net gains (losses)
September 30, 2019	Fair value		Gains		Losses			Unrealized net gains (losses)
Fixed income securities	$	59,259	$	3,082	$	(86	)	$	2,996
Short-term investments	5,254		—		—			—
Derivative instruments	—		—		(3		)	(3		)
Equity method of accounting (“EMA”) limited partnerships ⁽¹⁾								(3		)
Unrealized net capital gains and losses, pre-tax								2,990
Amounts recognized for:
Insurance reserves ⁽²⁾								(202		)
DAC and DSI ⁽³⁾								(221		)
Amounts recognized								(423		)
Deferred income taxes								(544		)
Unrealized net capital gains and losses, after-tax								$	2,023


⁽¹⁾	Unrealized net capital gains and losses for limited partnership interests represent the Company’s share of EMA limited partnerships’ OCI. Fair value and gross unrealized gains and losses are not applicable.


⁽²⁾	The insurance reserves adjustment represents the amount by which the reserve balance would increase if the net unrealized gains in the applicable product portfolios were realized and reinvested at lower interest rates, resulting in a premium deficiency. This adjustment primarily relates to structured settlement annuities with life contingencies (a type of immediate fixed annuities).


⁽³⁾	The DAC and DSI adjustment balance represents the amount by which the amortization of DAC and DSI would increase or decrease if the unrealized gains or losses in the respective product portfolios were realized.



Unrealized net capital gains and losses included in AOCI
($ in millions)	Fair value		Gross unrealized					Unrealized net gains (losses)
December 31, 2018	Fair value		Gains		Losses			Unrealized net gains (losses)
Fixed income securities	$	57,170	$	993	$	(957	)	$	36
Short-term investments	3,027		—		—			—
Derivative instruments	—		—		(3		)	(3		)
EMA limited partnerships								—
Unrealized net capital gains and losses, pre-tax								33
Amounts recognized for:
Insurance reserves								—
DAC and DSI								(33		)
Amounts recognized								(33		)
Deferred income taxes								(2		)
Unrealized net capital gains and losses, after-tax								$	(2	)

Schedule of change in unrealized net capital gains and losses



Change in unrealized net capital gains (losses)
($ in millions)	Nine months ended September 30, 2019
Fixed income securities	$	2,960
Derivative instruments	—
EMA limited partnerships	(3		)
Total	2,957
Amounts recognized for:
Insurance reserves	(202		)
DAC and DSI	(188		)
Amounts recognized	(390		)
Deferred income taxes	(542		)
Increase in unrealized net capital gains and losses, after-tax	$	2,025

Schedule of gross unrealized losses and fair value of available for sale securities by length of time



Gross unrealized losses and fair value by type and length of time held in a continuous unrealized loss position
($ in millions)	Less than 12 months						12 months or more						Total unrealized losses
($ in millions)	Number of issues	Fair value		Unrealized losses			Number of issues	Fair value		Unrealized losses			Total unrealized losses
September 30, 2019
Fixed income securities
U.S. government and agencies	8	$	165	$	(1	)	17	$	48	$	—		$	(1	)
Municipal	204	373		(2		)	1	14		(2		)	(4		)
Corporate	206	1,671		(31		)	96	973		(39		)	(70		)
Foreign government	32	205		(2		)	6	103		(1		)	(3		)
ABS	33	150		(2		)	20	122		(4		)	(6		)
RMBS	26	15		—			145	20		(1		)	(1		)
CMBS	1	5		—			1	2		(1		)	(1		)
Redeemable preferred stock	—	—		—			—	—		—			—
Total fixed income securities	510	$	2,584	$	(38	)	286	$	1,282	$	(48	)	$	(86	)
Investment grade fixed income securities	426	$	2,088	$	(13	)	237	$	991	$	(23	)	$	(36	)
Below investment grade fixed income securities	84	496		(25		)	49	291		(25		)	(50		)
Total fixed income securities	510	$	2,584	$	(38	)	286	$	1,282	$	(48	)	$	(86	)

December 31, 2018
Fixed income securities
U.S. government and agencies	11	$	55	$	—		38	$	364	$	(6	)	$	(6	)
Municipal	943	1,633		(10		)	1,147	1,554		(33		)	(43		)
Corporate	1,735	19,243		(543		)	645	8,374		(347		)	(890		)
Foreign government	7	20		(1		)	27	412		(4		)	(5		)
ABS	64	454		(5		)	28	161		(5		)	(10		)
RMBS	166	30		—			195	52		(2		)	(2		)
CMBS	3	7		—			2	—		(1		)	(1		)
Redeemable preferred stock	1	—		—			—	—		—			—
Total fixed income securities	2,930	$	21,442	$	(559	)	2,082	$	10,917	$	(398	)	$	(957	)
Investment grade fixed income securities	2,348	$	17,485	$	(331	)	2,021	$	10,626	$	(360	)	$	(691	)
Below investment grade fixed income securities	582	3,957		(228		)	61	291		(38		)	(266		)
Total fixed income securities	2,930	$	21,442	$	(559	)	2,082	$	10,917	$	(398	)	$	(957	)



Gross unrealized losses by unrealized loss position and credit quality as of September 30, 2019
($ in millions)	Investment grade			Below investment grade			Total
Fixed income securities with unrealized loss position less than 20% of amortized cost ^{(1) (2)}	$	(23	)	$	(46	)	$	(69	)
Fixed income securities with unrealized loss position greater than or equal to 20% of amortized cost^{(3) (4)}	(13		)	(4		)	(17		)
Total unrealized losses	$	(36	)	$	(50	)	$	(86	)


⁽¹⁾	Below investment grade fixed income securities include $25 million that have been in an unrealized loss position for less than twelve months.


⁽²⁾	Related to securities with an unrealized loss position less than 20% of amortized cost, the degree of which suggests that these securities do not pose a high risk of being other-than-temporarily impaired.


⁽³⁾	Below investment grade fixed income securities include zero that have been in an unrealized loss position for a period of twelve or more consecutive months.

⁽⁴⁾

Evaluated based on factors such as discounted cash flows and the financial condition and near-term and long-term prospects of the issue or issuer and were determined to have adequate resources to fulfill contractual obligations.

Carrying value of non-impaired fixed and variable rate mortgage loans by debt service coverage ratio distribution



Carrying value of non-impaired mortgage loans summarized by debt service coverage ratio distribution
($ in millions)	September 30, 2019						December 31, 2018
Debt service coverage ratio distribution	Fixed rate mortgage loans		Variable rate mortgage loans		Total		Fixed rate mortgage loans		Variable rate mortgage loans		Total
Below 1.0	$	20	$	32	$	52	$	6	$	31	$	37
1.0 - 1.25	247		—		247		273		—		273
1.26 - 1.50	1,347		18		1,365		1,192		—		1,192
Above 1.50	2,941		83		3,024		3,063		101		3,164
Total non-impaired mortgage loans	$	4,555	$	133	$	4,688	$	4,534	$	132	$	4,666

Net carrying value of impaired mortgage loans



Net carrying value of impaired mortgage loans
($ in millions)	September 30, 2019		December 31, 2018
Impaired mortgage loans with a valuation allowance	$	6	$	4
Impaired mortgage loans without a valuation allowance	—		—
Total impaired mortgage loans	$	6	$	4
Valuation allowance on impaired mortgage loans	$	3	$	3

Schedule of other investments by type



Other investments by asset type
($ in millions)	September 30, 2019		December 31, 2018
Bank loans	$	1,223	$	1,350
Policy loans	892		891
Real estate	917		791
Agent loans	663		620
Derivatives and other	209		200
Total	$	3,904	$	3,852

Fair Value of Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2019

Fair Value Disclosures [Abstract]

Schedule of assets and liabilities that are measured at fair value on a recurring and non-recurring basis



Assets and liabilities measured at fair value
	As of September 30, 2019
($ in millions)	Quoted prices in active markets for identical assets (Level 1)			Significant other observable inputs (Level 2)			Significant unobservable inputs (Level 3)			Counterparty and cash collateral netting			Total
Assets
Fixed income securities:
U.S. government and agencies	$	3,707		$	404		$	—					$	4,111
Municipal	—			8,774			64						8,838
Corporate - public	—			31,538			104						31,642
Corporate - privately placed	—			12,289			87						12,376
Foreign government	—			993			—						993
ABS - CDO	—			297			63						360
ABS - consumer and other	—			447			15						462
RMBS	—			392			—						392
CMBS	—			30			34						64
Redeemable preferred stock	—			21			—						21
Total fixed income securities	3,707			55,185			367						59,259
Equity securities	7,453			368			385						8,206
Short-term investments	2,530			2,709			15						5,254
Other investments: Free-standing derivatives	—			186			—			$	(52	)	134
Separate account assets	2,942			—			—						2,942
Other assets	1			—			—						1
Total recurring basis assets	16,633			58,448			767			(52		)	75,796
Total assets at fair value	$	16,633		$	58,448		$	767		$	(52	)	$	75,796
% of total assets at fair value	22.0		%	77.1		%	1.0		%	(0.1		)%	100.0		%

Investments reported at NAV													1,761
Total													$	77,557

Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	—		$	(454	)				$	(454	)
Other liabilities: Free-standing derivatives	(1		)	(59		)	—			$	5		(55		)
Total recurring basis liabilities	$	(1	)	$	(59	)	$	(454	)	$	5		$	(509	)
% of total liabilities at fair value	0.2		%	11.6		%	89.2		%	(1.0		)%	100.0		%



Assets and liabilities measured at fair value
	As of December 31, 2018
($ in millions)	Quoted prices in active markets for identical assets (Level 1)			Significant other observable inputs (Level 2)			Significant unobservable inputs (Level 3)			Counterparty and cash collateral netting			Total
Assets
Fixed income securities:
U.S. government and agencies	$	5,085		$	432		$	—					$	5,517
Municipal	—			9,099			70						9,169
Corporate - public	—			29,200			70						29,270
Corporate - privately placed	—			10,776			90						10,866
Foreign government	—			747			—						747
ABS - CDO	—			263			6						269
ABS - consumer and other	—			713			63						776
RMBS	—			464			—						464
CMBS	—			44			26						70
Redeemable preferred stock	—			22			—						22
Total fixed income securities	5,085			51,760			325						57,170
Equity securities	4,364			331			341						5,036
Short-term investments	1,338			1,659			30						3,027
Other investments: Free-standing derivatives	—			139			1			$	(23	)	117
Separate account assets	2,805			—			—						2,805
Other assets	2			—			—						2
Total recurring basis assets	$	13,594		$	53,889		$	697		$	(23	)	$	68,157
% of total assets at fair value	19.9		%	79.1		%	1.0		%	—		%	100.0		%

Investments reported at NAV													1,779
Total													$	69,936
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	—		$	(224	)				$	(224	)
Other liabilities: Free-standing derivatives	(1		)	(62		)	—			$	6		(57		)
Total recurring basis liabilities	$	(1	)	$	(62	)	$	(224	)	$	6		$	(281	)
% of total liabilities at fair value	0.3		%	22.1		%	79.7		%	(2.1		)%	100.0		%

Summary of quantitative information about the significant unobservable inputs



Quantitative information about the significant unobservable inputs used in Level 3 fair value measurements
($ in millions)	Fair value			Valuation technique	Unobservable input	Range	Weighted average
September 30, 2019
Derivatives embedded in life and annuity contracts – Equity-indexed and forward starting options	$	(417	)	Stochastic cash flow model	Projected option cost	1.0 - 4.2%	2.64%

December 31, 2018
Derivatives embedded in life and annuity contracts – Equity-indexed and forward starting options	$	(185	)	Stochastic cash flow model	Projected option cost	1.0 - 2.2%	1.74%

Schedule of the rollforward of Level 3 assets and liabilities held at fair value on a recurring basis



Rollforward of Level 3 assets and liabilities held at fair value during the three months period ended September 30, 2019
	Balance as of June 30, 2019			Total gains (losses) included in:						Transfers into Level 3			Transfers out of Level 3
($ in millions)	Balance as of June 30, 2019			Net income			OCI			Transfers into Level 3			Transfers out of Level 3
Assets
Fixed income securities:
Municipal	$	63		$	—		$	2		$	—		$	—
Corporate - public	46			—			1			—			(7		)
Corporate - privately placed	89			—			(1		)	—			—
ABS - CDO	10			1			—			50			(5		)
ABS - consumer and other	43			—			—			—			(30		)
RMBS	1			—			(1		)	—			—
CMBS	34			—			—			—			—
Total fixed income securities	286			1			1			50			(42		)
Equity securities	319			11			—			—			—
Short-term investments	5			—			—			—			—
Free-standing derivatives, net	—			—			—			—			—
Total recurring Level 3 assets	$	610		$	12		$	1		$	50		$	(42	)
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	(437	)	$	(14	)	$	—		$	—		$	—
Total recurring Level 3 liabilities	$	(437	)	$	(14	)	$	—		$	—		$	—

	Purchases			Sales			Issues			Settlements			Balance as of September 30, 2019
Assets
Fixed income securities:
Municipal	$	—		$	(1	)	$	—		$	—		$	64
Corporate - public	66			(2		)	—			—			104
Corporate - privately placed	1			—			—			(2		)	87
ABS - CDO	8			—			—			(1		)	63
ABS - consumer and other	3			—			—			(1		)	15
RMBS	—			—			—			—			—
CMBS	—			—			—			—			34
Total fixed income securities	78			(3		)	—			(4		)	367
Equity securities	55			—			—			—			385
Short-term investments	10			—			—			—			15
Free-standing derivatives, net	—			—			—			—			—
Total recurring Level 3 assets	$	143		$	(3	)	$	—		$	(4	)	$	767
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	—		$	(9	)	$	6		$	(454	)
Total recurring Level 3 liabilities	$	—		$	—		$	(9	)	$	6		$	(454	)



Total Level 3 gains (losses) included in net income for the three months ended September 30, 2019
	Net investment income		Realized capital gains and losses		Life contract benefits			Interest credited to contractholder funds			Total
Components of net income	$	5	$	7	$	(1	)	$	(13	)	$	(2	)



Rollforward of Level 3 assets and liabilities held at fair value during the nine months period ended September 30, 2019
	Balance as of December 31, 2018			Total gains (losses) included in:						Transfers into Level 3			Transfers out of Level 3
($ in millions)	Balance as of December 31, 2018			Net income			OCI			Transfers into Level 3			Transfers out of Level 3
Assets
Fixed income securities:
Municipal	$	70		$	—		$	4		$	—		$	(5	)
Corporate - public	70			—			3			—			(47		)
Corporate - privately placed	90			(1		)	1			15			(2		)
ABS - CDO	6			1			—			51			(5		)
ABS - consumer and other	63			—			—			—			(145		)
RMBS	—			—			(1		)	1			—
CMBS	26			—			—			3			—
Total fixed income securities	325			—			7			70			(204		)
Equity securities	341			49			—			—			—
Short-term investments	30			—			—			—			—
Free-standing derivatives, net	1			(1		)	—			—			—
Total recurring Level 3 assets	$	697		$	48		$	7		$	70		$	(204	)
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	(224	)	$	(54	)	$	—		$	(175	)	$	—
Total recurring Level 3 liabilities	$	(224	)	$	(54	)	$	—		$	(175	)	$	—

	Purchases			Sales			Issues			Settlements			Balance as of September 30, 2019
Assets
Fixed income securities:
Municipal	$	—		$	(4	)	$	—		$	(1	)	$	64
Corporate - public	86			(7		)	—			(1		)	104
Corporate - privately placed	2			(13		)	—			(5		)	87
ABS - CDO	11			—			—			(1		)	63
ABS - consumer and other	124			(22		)	—			(5		)	15
RMBS	—			—			—			—			—
CMBS	6			—			—			(1		)	34
Total fixed income securities	229			(46		)	—			(14		)	367
Equity securities	77			(82		)	—			—			385
Short-term investments	25			(40		)	—			—			15
Free-standing derivatives, net	—			—			—			—			—
Total recurring Level 3 assets	$	331		$	(168	)	$	—		$	(14	)	$	767
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	—		$	(9	)	$	8		$	(454	)
Total recurring Level 3 liabilities	$	—		$	—		$	(9	)	$	8		$	(454	)



Total Level 3 gains (losses) included in net income for the nine months ended September 30, 2019
	Net investment income		Realized capital gains and losses		Life contract benefits		Interest credited to contractholder funds			Total
Components of net income	$	10	$	38	$	2	$	(56	)	$	(6	)



Rollforward of Level 3 assets and liabilities held at fair value during the three months period ended September 30, 2018
	Balance as of June 30, 2018			Total gains (losses) included in:						Transfers into Level 3			Transfers out of Level 3
($ in millions)	Balance as of June 30, 2018			Net income			OCI			Transfers into Level 3			Transfers out of Level 3
Assets
Fixed income securities:
Municipal	$	106		$	—		$	(1	)	$	—		$	(9	)
Corporate - public	76			—			(1		)	12			(4		)
Corporate - privately placed	195			1			(1		)	—			(20		)
ABS - CDO	9			—			1			20			—
ABS - consumer and other	73			—			—			12			(29		)
CMBS	26			—			—			—			—
Total fixed income securities	485			1			(2		)	44			(62		)
Equity securities	291			8			—			—			—
Short-term investments	—			—			—			—			—
Free-standing derivatives, net	1			—			—			—			—
Total recurring Level 3 assets	$	777		$	9		$	(2	)	$	44		$	(62	)
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	(260	)	$	(7	)	$	—		$	—		$	—
Total recurring Level 3 liabilities	$	(260	)	$	(7	)	$	—		$	—		$	—

	Purchases			Sales			Issues			Settlements			Balance as of September 30, 2018
Assets
Fixed income securities:
Municipal	$	—		$	(6	)	$	—		$	(1	)	$	89
Corporate - public	10			(1		)	—			—			92
Corporate - privately placed	6			(2		)	—			(12		)	167
ABS - CDO	—			—			—			(1		)	29
ABS - consumer and other	33			(20		)	—			(17		)	52
CMBS	—			—			—			—			26
Total fixed income securities	49			(29		)	—			(31		)	455
Equity securities	21			—			—			—			320
Short-term investments	20			—			—			—			20
Free-standing derivatives, net	—			—			—			—			1			⁽¹⁾
Total recurring Level 3 assets	$	90		$	(29	)	$	—		$	(31	)	$	796
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	—		$	—		$	1		$	(266	)
Total recurring Level 3 liabilities	$	—		$	—		$	—		$	1		$	(266	)


⁽¹⁾	Comprises $1 million of assets.



Total Level 3 gains (losses) included in net income for the three months ended September 30, 2018
	Net investment income		Realized capital gains and losses		Life contract benefits		Interest credited to contractholder funds			Total
Components of net income	$	—	$	9	$	2	$	(9	)	$	2



Rollforward of Level 3 assets and liabilities held at fair value during the nine months period ended September 30, 2018
	Balance as of December 31, 2017			Total gains (losses) included in:						Transfers into Level 3			Transfers out of Level 3
($ in millions)	Balance as of December 31, 2017			Net income			OCI			Transfers into Level 3			Transfers out of Level 3
Assets
Fixed income securities:
Municipal	$	101		$	1		$	(2	)	$	—		$	(11	)
Corporate - public	108			—			(3		)	16			(9		)
Corporate - privately placed	224			(1		)	(2		)	20			(49		)
ABS - CDO	99			—			1			20			(89		)
ABS - consumer and other	48			—			1			22			(45		)
CMBS	26			—			—			—			—
Total fixed income securities	606			—			(5		)	78			(203		)
Equity securities	210			24			—			—			—
Short-term investments	20			—			—			—			—
Free-standing derivatives, net	1			—			—			—			—
Total recurring Level 3 assets	$	837		$	24		$	(5	)	$	78		$	(203	)
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	(286	)	$	17		$	—		$	—		$	—
Total recurring Level 3 liabilities	$	(286	)	$	17		$	—		$	—		$	—

	Purchases			Sales			Issues			Settlements			Balance as of September 30, 2018
Assets
Fixed income securities:
Municipal	$	10		$	(8	)	$	—		$	(2	)	$	89
Corporate - public	10			(27		)	—			(3		)	92
Corporate - privately placed	21			(5		)	—			(41		)	167
ABS - CDO	—			—			—			(2		)	29
ABS - consumer and other	108			(62		)	—			(20		)	52
CMBS	1			—			—			(1		)	26
Total fixed income securities	150			(102		)	—			(69		)	455
Equity securities	100			(14		)	—			—			320
Short-term investments	45			(45		)	—			—			20
Free-standing derivatives, net	—			—			—			—			1			⁽¹⁾
Total recurring Level 3 assets	$	295		$	(161	)	$	—		$	(69	)	$	796
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	—		$	(1	)	$	4		$	(266	)
Total recurring Level 3 liabilities	$	—		$	—		$	(1	)	$	4		$	(266	)


⁽¹⁾	Comprises $1 million of assets.



Total Level 3 gains (losses) included in net income for the nine months ended September 30, 2018
	Net investment income		Realized capital gains and losses		Life contract benefits		Interest credited to contractholder funds		Total
Components of net income	$	—	$	24	$	7	$	10	$	41

Schedule of gains and losses included in net income for Level 3 assets and liabilities still held at the balance sheet date



Valuation changes included in net income for Level 3 assets and liabilities held as of September 30,
($ in millions)	Three months ended September 30,						Nine months ended September 30,
($ in millions)	2019			2018			2019			2018
Assets
Equity securities	$	11		$	8		$	25		$	23
Free-standing derivatives, net	—			—			(1		)	—
Total recurring Level 3 assets	$	11		$	8		$	24		$	23
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	(14	)	$	(7	)	$	(54	)	$	17
Total recurring Level 3 liabilities	(14		)	(7		)	(54		)	17
Total included in net income	$	(3	)	$	1		$	(30	)	$	40

Components of net income
Net investment income	$	5		$	—		$	10		$	—
Realized capital gains and losses	6			8			14			23
Life contract benefits	(1		)	2			2			7
Interest credited to contractholder funds	(13		)	(9		)	(56		)	10
Total included in net income	$	(3	)	$	1		$	(30	)	$	40

Schedule of carrying values and fair value estimates of financial instruments not carried at fair value

Financial assets



Carrying values and fair value estimates of financial instruments not carried at fair value
($ in millions)		September 30, 2019				December 31, 2018
($ in millions)	Fair value level	Carrying value		Fair value		Carrying value		Fair value
Mortgage loans	Level 3	$	4,694	$	4,876	$	4,670	$	4,703
Bank loans	Level 3	1,223		1,199		1,350		1,298
Agent loans	Level 3	663		666		620		617

Financial liabilities



Carrying values and fair value estimates of financial instruments not carried at fair value
($ in millions)		September 30, 2019				December 31, 2018
($ in millions)	Fair value level	Carrying value		Fair value		Carrying value		Fair value
Contractholder funds on investment contracts	Level 3	$	8,619	$	9,435	$	9,250	$	9,665
Long-term debt	Level 2	6,630		7,710		6,451		6,708
Liability for collateral	Level 2	2,087		2,087		1,458		1,458

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details

Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Volume and fair value positions of derivative instruments and location in the Consolidated Statement of Financial Position



Summary of the volume and fair value positions of derivative instruments as of September 30, 2019
($ in millions, except number of contracts)		Volume ⁽¹⁾
($ in millions, except number of contracts)	Balance sheet location	Notional amount		Number of contracts	Fair value, net			Gross asset		Gross liability
Asset derivatives
Derivatives designated as fair value accounting hedging instruments
Other	Other assets	$	2	n/a	$	—		$	—	$	—
Derivatives not designated as accounting hedging instruments
Interest rate contracts
Interest rate cap agreements	Other investments	21		n/a	—			—		—
Futures	Other assets	—		2,674	—			—		—
Equity and index contracts
Options	Other investments	—		9,290	131			131		—
Futures	Other assets	—		1,607	1			1		—
Total return index contracts
Total return swap agreements – fixed income	Other investments	7		n/a	—			—		—
Total return swap agreements – equity index	Other investments	170		n/a	3			3		—
Foreign currency contracts
Foreign currency forwards	Other investments	291		n/a	19			20		(1		)
Credit default contracts
Credit default swaps – buying protection	Other investments	149		n/a	(4		)	—		(4		)
Credit default swaps – selling protection	Other investments	5		n/a	—			—		—
Subtotal		643		13,571	150			155		(5		)
Total asset derivatives		$	645	13,571	$	150		$	155	$	(5	)

Liability derivatives
Derivatives not designated as accounting hedging instruments
Interest rate contracts
Interest rate cap agreements	Other liabilities & accrued expenses	$	14	n/a	$	—		$	—	$	—
Futures	Other liabilities & accrued expenses	—		2,915	—			—		—
Equity and index contracts
Options	Other liabilities & accrued expenses	—		9,016	(52		)	—		(52		)
Futures	Other liabilities & accrued expenses	—		1,383	(1		)	—		(1		)
Total return index contracts
Total return swap agreements – fixed income	Other liabilities & accrued expenses	228		n/a	8			8		—
Foreign currency contracts
Foreign currency forwards	Other liabilities & accrued expenses	396		n/a	23			24		(1		)
Embedded derivative financial instruments
Guaranteed accumulation benefits	Contractholder funds	161		n/a	(21		)	—		(21		)
Guaranteed withdrawal benefits	Contractholder funds	205		n/a	(16		)	—		(16		)
Equity-indexed and forward starting options in life and annuity product contracts	Contractholder funds	1,782		n/a	(417		)	—		(417		)
Credit default contracts
Credit default swaps – buying protection	Other liabilities & accrued expenses	46		n/a	(1		)	—		(1		)
Credit default swaps – selling protection	Other liabilities & accrued expenses	4		n/a	—			—		—
Total liability derivatives		2,836		13,314	(477		)	$	32	$	(509	)
Total derivatives		$	3,481	26,885	$	(327	)


⁽¹⁾	Volume for OTC and cleared derivative contracts is represented by their notional amounts. Volume for exchange traded derivatives is represented by the number of contracts, which is the basis on which they are traded. (n/a = not applicable)



Summary of the volume and fair value positions of derivative instruments as of December 31, 2018
($ in millions, except number of contracts)		Volume
($ in millions, except number of contracts)	Balance sheet location	Notional amount		Number of contracts	Fair value, net			Gross asset		Gross liability
Asset derivatives
Derivatives not designated as accounting hedging instruments
Interest rate contracts
Interest rate cap agreements	Other investments	$	6	n/a	$	—		$	—	$	—
Futures	Other assets	—		1,330	1			1		—
Equity and index contracts
Options	Other investments	—		11,131	115			115		—
Futures	Other assets	—		1,453	1			1		—
Total return index contracts
Total return swap agreements – fixed income	Other investments	7		n/a	—			—		—
Total return swap agreements – equity index	Other investments	61		n/a	(2		)	—		(2		)
Foreign currency contracts
Foreign currency forwards	Other investments	258		n/a	10			11		(1		)
Credit default contracts
Credit default swaps – buying protection	Other investments	136		n/a	(1		)	2		(3		)
Other contracts
Other	Other assets	2		n/a	—			—		—
Total asset derivatives		$	470	13,914	$	124		$	130	$	(6	)

Liability derivatives
Derivatives not designated as accounting hedging instruments
Interest rate contracts
Interest rate cap agreements	Other liabilities & accrued expenses	$	31	n/a	$	1		$	1	$	—
Futures	Other liabilities & accrued expenses	—		1,300	(1		)	—		(1		)
Equity and index contracts
Options and futures	Other liabilities & accrued expenses	—		10,956	(50		)	—		(50		)
Total return index contracts
Total return swap agreements – fixed income	Other liabilities & accrued expenses	38		n/a	(1		)	—		(1		)
Total return swap agreements – equity index	Other liabilities & accrued expenses	71		n/a	(4		)	—		(4		)
Foreign currency contracts
Foreign currency forwards	Other liabilities & accrued expenses	341		n/a	10			11		(1		)
Embedded derivative financial instruments
Guaranteed accumulation benefits	Contractholder funds	169		n/a	(25		)	—		(25		)
Guaranteed withdrawal benefits	Contractholder funds	210		n/a	(14		)	—		(14		)
Equity-indexed and forward starting options in life and annuity product contracts	Contractholder funds	1,770		n/a	(185		)	—		(185		)
Credit default contracts
Credit default swaps – buying protection	Other liabilities & accrued expenses	40		n/a	—			—		—
Credit default swaps – selling protection	Other liabilities & accrued expenses	5		n/a	—			—		—
Total liability derivatives		2,675		12,256	(269		)	$	12	$	(281	)
Total derivatives		$	3,145	26,170	$	(145	)

Schedule of gross and net amount for the Company's OTC derivatives subject to enforceable master netting arrangements



Gross and net amounts for OTC derivatives ⁽¹⁾
($ in millions)				Offsets
($ in millions)	Gross amount			Counter-party netting			Cash collateral (received) pledged			Net amount on balance sheet			Securities collateral (received) pledged		Net amount
September 30, 2019
Asset derivatives	$	55		$	(37	)	$	(15	)	$	3		$	—	$	3
Liability derivatives	(7		)	37			(32		)	(2		)	—		(2		)

December 31, 2018
Asset derivatives	$	25		$	(18	)	$	(5	)	$	2		$	—	$	2
Liability derivatives	(12		)	18			(12		)	(6		)	—		(6		)

⁽¹⁾

All OTC derivatives are subject to enforceable master netting agreements.

Gains and losses from valuation, settlements, and hedge ineffectiveness, fair value hedges and derivatives not designated as hedges



Gains (losses) from valuation and settlements reported on derivatives not designated as accounting hedges
($ in millions)	Realized capital gains (losses)			Life contract benefits			Interest credited to contractholder funds			Operating costs and expenses			Total gain (loss) recognized in net income on derivatives
Three months ended September 30, 2019
Interest rate contracts	$	32		$	—		$	—		$	—		$	32
Equity and index contracts	(10		)	—			4			(1		)	(7		)
Embedded derivative financial instruments	—			(1		)	(16		)	—			(17		)
Foreign currency contracts	21			—			—			—			21
Credit default contracts	(1		)	—			—			—			(1		)
Total return swaps - fixed income	1			—			—			—			1
Total return swaps - equity index	(3		)	—			—			—			(3		)
Total	$	40		$	(1	)	$	(12	)	$	(1	)	$	26

Nine months ended September 30, 2019
Interest rate contracts	$	58		$	—		$	—		$	—		$	58
Equity and index contracts	(98		)	—			46			25			(27		)
Embedded derivative financial instruments	—			2			(57		)	—			(55		)
Foreign currency contracts	31			—			—			—			31
Credit default contracts	(6		)	—			—			—			(6		)
Total return swaps - fixed income	11			—			—			—			11
Total return swaps - equity index	20			—			—			—			20
Total	$	16		$	2		$	(11	)	$	25		$	32

Three months ended September 30, 2018
Interest rate contracts	$	(1	)	$	—		$	—		$	—		$	(1	)
Equity and index contracts	(12		)	—			19			9			16
Embedded derivative financial instruments	—			2			(8		)	—			(6		)
Foreign currency contracts	7			—			—			—			7
Total return swaps	11			—			—			—			11
Total	$	5		$	2		$	11		$	9		$	27

Nine months ended September 30, 2018
Equity and index contracts	$	(15	)	$	—		$	25		$	12		$	22
Embedded derivative financial instruments	—			7			13			—			20
Foreign currency contracts	19			—			—			(1		)	18
Total return swaps	12			—			—			—			12
Credit default contracts	1			—			—			—			1
Total	$	17		$	7		$	38		$	11		$	73

Counterparty credit exposure by counterparty credit rating



OTC derivatives counterparty credit exposure by counterparty credit rating
($ in millions)	September 30, 2019							December 31, 2018
Rating ⁽¹⁾	Number of counter- parties	Notional amount⁽²⁾		Credit exposure⁽²⁾		Exposure, net of collateral⁽²⁾		Number of counter- parties	Notional amount⁽²⁾		Credit exposure⁽²⁾		Exposure, net of collateral⁽²⁾
A+	6	$	1,152	$	46	$	3	3	$	643	$	19	$	1
A	1	112		3		—		2	121		1		—
Total	7	$	1,264	$	49	$	3	5	$	764	$	20	$	1


⁽¹⁾	Allstate uses the lower of S&P’s or Moody’s long-term debt issuer ratings.

⁽²⁾

Only OTC derivatives with a net positive fair value are included for each counterparty.

Derivative instruments with credit features in a liability position, including fair value of assets and collateral netted against the liability



($ in millions)	As of September 30, 2019			As of December 31, 2018
Gross liability fair value of contracts containing credit-risk-contingent features	$	7		$	11
Gross asset fair value of contracts containing credit-risk-contingent features and subject to MNAs	(7		)	(5		)
Collateral posted under MNAs for contracts containing credit-risk-contingent features	—			(2		)
Maximum amount of additional exposure for contracts with credit-risk-contingent features if all features were triggered concurrently	$	—		$	4

Reserve for Property and Casualty Insurance Claims and Claims Expense (Tables)

9 Months Ended

Sep. 30, 2019

Reserve for Property-Liability Insurance Claims and Claims Expense [Abstract]

Schedule of liability for unpaid claims and claims adjustment expense



Rollforward of the reserve for property and casualty insurance claims and claims expense
	Nine months ended September 30,
($ in millions)	2019			2018
Balance as of January 1	$	27,423		$	26,325
Less recoverables ⁽¹⁾	(7,155		)	(6,471		)
Net balance as of January 1	20,268			19,854
Incurred claims and claims expense related to:
Current year	18,345			16,846
Prior years	(118		)	(135		)
Total incurred	18,227			16,711
Claims and claims expense paid related to:
Current year	(10,640		)	(10,077		)
Prior years	(6,872		)	(6,174		)
Total paid	(17,512		)	(16,251		)
Net balance as of September 30	20,983			20,314
Plus recoverables	7,093			6,625
Balance as of September 30	$	28,076		$	26,939

⁽¹⁾

Recoverables comprises reinsurance and indemnification recoverables.



Prior year reserve reestimates included in claims and claims expense ⁽¹⁾
	Nine months ended September 30,
($ in millions)	Non-catastrophes						Catastrophes						Total
	2019			2018			2019 ⁽²⁾			2018			2019			2018
Auto ⁽³⁾	$	(302	)	$	(319	)	$	(9	)	$	(37	)	$	(311	)	$	(356	)
Homeowners	—			(38		)	59			84			59			46
Other personal lines	13			(13		)	4			(2		)	17			(15		)
Commercial lines	18			107			(1		)	—			17			107
Discontinued Lines and Coverages ⁽⁴⁾	103			85			—			—			103			85
Service Businesses	(3		)	(2		)	—			—			(3		)	(2		)
Total prior year reserve reestimates	$	(171	)	$	(180	)	$	53		$	45		$	(118	)	$	(135	)


⁽¹⁾	Favorable reserve reestimates are shown in parentheses.


⁽²⁾	Includes $13 million of reinstatement reinsurance premiums incurred during the period related to the 2018 Camp Fire, which primarily impacted homeowners reestimates.


⁽³⁾	Non-catastrophe results related to continued favorable personal lines auto injury coverage development.

⁽⁴⁾

The Company’s 2019 annual reserve review, using established industry and actuarial best practices, resulted in unfavorable reestimates of $95 million.

Reinsurance (Tables)

9 Months Ended

Sep. 30, 2019

Reinsurance Disclosures [Abstract]

Schedule of reductions to premiums and contract charges due to reinsurance premium ceded amounts



Effects of reinsurance ceded on property and casualty premiums earned and life premiums and contract charges
($ in millions)	Three months ended September 30,						Nine months ended September 30,
($ in millions)	2019			2018			2019			2018
Property and casualty insurance premiums earned	$	(289	)	$	(260	)	$	(836	)	$	(756	)
Life premiums and contract charges	(68		)	(76		)	(200		)	(221		)

Schedule of reductions to costs and expenses due to reinsurance ceded amounts



Effects of reinsurance ceded on property and casualty insurance claims and claims expense, life contract benefits and interest credited to contractholder funds
($ in millions)	Three months ended September 30,						Nine months ended September 30,
($ in millions)	2019			2018			2019			2018
Property and casualty insurance claims and claims expense	$	(216	)	$	(247	)	$	(465	)	$	(572	)
Life contract benefits	(74		)	(35		)	(92		)	(150		)
Interest credited to contractholder funds	(6		)	(5		)	(14		)	(16		)

Company Restructuring (Tables)

9 Months Ended

Sep. 30, 2019

Restructuring and Related Activities [Abstract]

Schedule of changes in the restructuring liability



Restructuring activity during the period
($ in millions)	Employee costs			Exit costs			Total liability
Restructuring liability as of December 31, 2018	$	29		$	15		$	44
Expense incurred	31			3			34
Adjustments to liability	(7		)	—			(7		)
Payments	(37		)	(7		)	(44		)
Restructuring liability as of September 30, 2019	$	16		$	11		$	27

Benefit Plans (Tables)

9 Months Ended

Sep. 30, 2019

Retirement Benefits [Abstract]

Company's pension and postretirement benefit plans



Components of net cost (benefit) for pension and other postretirement plans
	Three months ended September 30,						Nine months ended September 30,
($ in millions)	2019			2018			2019			2018
Pension benefits
Service cost	$	30		$	27		$	86		$	83
Interest cost	58			65			185			189
Expected return on plan assets	(103		)	(103		)	(297		)	(323		)
Amortization of prior service credit	(14		)	(14		)	(42		)	(42		)
Costs and expenses	(29		)	(25		)	(68		)	(93		)
Remeasurement of projected benefit obligation	323			(38		)	1,054			(314		)
Remeasurement of plan assets	(136		)	4			(752		)	301
Remeasurement gains and losses	187			(34		)	302			(13		)
Pension net cost (benefit)	$	158		$	(59	)	$	234		$	(106	)

Postretirement benefits
Service cost	$	2		$	1		$	6		$	5
Interest cost	4			4			11			11
Amortization of prior service credit	—			(5		)	(2		)	(16		)
Costs and expenses	6			—			15			—
Remeasurement of projected benefit obligation	38			(5		)	63			(19		)
Remeasurement of plan assets	—			—			—			—
Remeasurement gains and losses	38			(5		)	63			(19		)
Postretirement net cost (benefit)	$	44		$	(5	)	$	78		$	(19	)

Pension and postretirement benefits
Costs and expenses	$	(23	)	$	(25	)	$	(53	)	$	(93	)
Remeasurement gains and losses	225			(39		)	365			(32		)
Total net cost (benefit)	$	202		$	(64	)	$	312		$	(125	)

Differences between expected and actual returns and changes in assumptions affect our pension and other postretirement obligations, plan assets and expenses.

Supplemental Cash Flow Information (Tables)

9 Months Ended

Sep. 30, 2019

Supplemental Cash Flow Information [Abstract]

Schedule of supplemental cash flow information from collateralized securities received

The accompanying cash flows are included in cash flows from operating activities in the Condensed Consolidated Statements of Cash Flows along with the activities resulting from management of the proceeds, as follows:



($ in millions)	Nine months ended September 30,
($ in millions)	2019			2018
Net change in proceeds managed
Net change in fixed income securities	$	80		$	175
Net change in short-term investments	(709		)	(454		)
Operating cash flow used	$	(629	)	$	(279	)

Net change in liabilities
Liabilities for collateral, beginning of period	$	(1,458	)	$	(1,124	)
Liabilities for collateral, end of period	(2,087		)	(1,403		)
Operating cash flow provided	$	629		$	279

Other Comprehensive Income (Tables)

9 Months Ended

Sep. 30, 2019

Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]

Other comprehensive income (loss) on a pre-tax and after-tax basis



Components of other comprehensive income (loss) on a pre-tax and after-tax basis
($ in millions)	Three months ended September 30,
	2019									2018
	Pre-tax			Tax			After-tax			Pre-tax			Tax		After-tax
Unrealized net holding gains and losses arising during the period, net of related offsets	$	603		$	(127	)	$	476		$	(116	)	$	25	$	(91	)
Less: reclassification adjustment of realized capital gains and losses	136			(29		)	107			(26		)	5		(21		)
Unrealized net capital gains and losses	467			(98		)	369			(90		)	20		(70		)
Unrealized foreign currency translation adjustments	(12		)	2			(10		)	(18		)	4		(14		)
Unamortized pension and other postretirement prior service credit ⁽¹⁾	(15		)	3			(12		)	(19		)	4		(15		)
Other comprehensive income (loss)	$	440		$	(93	)	$	347		$	(127	)	$	28	$	(99	)

	Nine months ended September 30,
	2019									2018
	Pre-tax			Tax			After-tax			Pre-tax			Tax		After-tax
Unrealized net holding gains and losses arising during the period, net of related offsets	$	2,811		$	(593	)	$	2,218		$	(1,103	)	$	233	$	(870	)
Less: reclassification adjustment of realized capital gains and losses	244			(51		)	193			(129		)	27		(102		)
Unrealized net capital gains and losses	2,567			(542		)	2,025			(974		)	206		(768		)
Unrealized foreign currency translation adjustments	(1		)	—			(1		)	(28		)	6		(22		)
Unamortized pension and other postretirement prior service credit ⁽¹⁾	(44		)	9			(35		)	(58		)	13		(45		)
Other comprehensive income (loss)	$	2,522		$	(533	)	$	1,989		$	(1,060	)	$	225	$	(835	)

⁽¹⁾

Represents prior service credits reclassified out of other comprehensive income and amortized into operating costs and expenses.

General - Additional Information (Details) - USD ($)		3 Months Ended	9 Months Ended
General - Additional Information (Details) - USD ($)	Jan. 01, 2020	Sep. 30, 2019	Sep. 30, 2019	Sep. 30, 2018	Jul. 01, 2019	Jun. 30, 2019	Jan. 01, 2019	Dec. 31, 2018	Jul. 01, 2018	Jun. 30, 2018	Jan. 01, 2018	Dec. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Impairment of intangible assets		$ 55,000,000	$ 55,000,000	$ 0
Lease liabilities		542,000,000	542,000,000
Right-of-Use asset		$ 443,000,000	$ 443,000,000
Operating lease, renewal term		20 years	20 years
Operating lease, option to terminate			60 days
Lease, cost		$ 45,000,000	$ 128,000,000
Variable lease, cost		7,000,000	22,000,000
Stockholders' equity		(26,140,000,000)	(26,140,000,000)	(23,659,000,000)				$ (21,312,000,000)
Accounting Standards Update 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Lease liabilities							$ 585,000,000
Right-of-Use asset							488,000,000
Retained income
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect of change in accounting principle					$ 0		21,000,000		$ 0		$ 1,088,000,000
Stockholders' equity		(46,527,000,000)	(46,527,000,000)	(44,776,000,000)		$ (45,803,000,000)		(44,033,000,000)		$ (43,997,000,000)		$ (41,579,000,000)
Retained income \| Accounting Standards Update 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect of change in accounting principle							21,000,000
Accumulated other comprehensive income (loss)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect of change in accounting principle					0		0		0		(910,000,000)
Stockholders' equity		$ (2,107,000,000)	$ (2,107,000,000)	(144,000,000)		(1,760,000,000)		(118,000,000)		(243,000,000)		(1,889,000,000)
Minimum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease, term of contract		1 year	1 year
Maximum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease, term of contract		10 years	10 years
Impact of change \| Impact of change
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Stockholders' equity		$ 397,000,000	$ 397,000,000	(26,000,000)	12,000,000		18,000,000				0
Impact of change \| Impact of change \| Retained income
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect of change in accounting principle					0		0		0		0
Stockholders' equity		1,879,000,000	1,879,000,000	1,402,000,000		1,739,000,000		1,675,000,000		1,511,000,000	1,580,000,000	1,583,000,000
Impact of change \| Impact of change \| Accumulated other comprehensive income (loss)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect of change in accounting principle					$ 0		$ 0		$ 0		0
Stockholders' equity		$ (1,482,000,000)	$ (1,482,000,000)	$ (1,428,000,000)		$ (1,512,000,000)		$ (1,675,000,000)		$ (1,511,000,000)	$ (1,580,000,000)	$ (1,583,000,000)
Forecast \| Minimum \| Retained income \| Accounting Standards Update 2016-13
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect of change in accounting principle	$ (75,000,000)
Allowance for credit loss, period increase	260,000,000
Forecast \| Maximum \| Retained income \| Accounting Standards Update 2016-13
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect of change in accounting principle	(125,000,000)
Allowance for credit loss, period increase	$ 330,000,000

General - Other information related to operating leases (Details)	Sep. 30, 2019
General [Abstract]
Weighted average remaining lease term (years)	6 years
Weighted average discount rate	3.32%

General - Maturity of lease liabilities (Details) $ in Millions	Sep. 30, 2019 USD ($)
General [Abstract]
2019	$ 12
2020	141
2021	111
2022	91
2023	76
2024	59
Thereafter	108
Total lease payments	598
Less: interest	(56)
Present value of lease liabilities	$ 542

General - Statement of Operations (Details) - USD ($)	3 Months Ended		9 Months Ended
General - Statement of Operations (Details) - USD ($)	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Jul. 01, 2019	Jun. 30, 2019	Jan. 01, 2019	Dec. 31, 2018	Jun. 30, 2018	Jan. 01, 2018	Dec. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Property and casualty insurance claims and claims expense	$ 6,051,000,000	$ 5,805,000,000	$ 18,227,000,000	$ 16,711,000,000
Operating costs and expenses	1,414,000,000	1,425,000,000	4,174,000,000	4,086,000,000
Pension and other postretirement remeasurement gains and losses	(225,000,000)	39,000,000	(365,000,000)	32,000,000
Restructuring and related charges	0	13,000,000	27,000,000	55,000,000
Total costs and expenses	9,909,000,000	9,288,000,000	29,348,000,000	27,000,000,000
Gain on disposition of operations	0	(1,000,000)	(3,000,000)	(4,000,000)
Income from operations before income tax expense	1,160,000,000	1,178,000,000	3,858,000,000	3,338,000,000
Income tax expense	229,000,000	199,000,000	784,000,000	636,000,000
Net income	931,000,000	979,000,000	3,074,000,000	2,702,000,000
Net income applicable to common shareholders	$ 889,000,000	$ 942,000,000	$ 2,971,000,000	$ 2,597,000,000
Net income available to common shareholders per common share - Basic (in dollars per share)	$ 2.71	$ 2.72	$ 8.98	$ 7.43
Net income available to common shareholders per common share - Diluted (in dollars per share)	$ 2.67	$ 2.68	$ 8.85	$ 7.31
Total shareholders’ equity	$ 26,140,000,000	$ 23,659,000,000	$ 26,140,000,000	$ 23,659,000,000				$ 21,312,000,000
Previously reported
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Property and casualty insurance claims and claims expense	6,080,000,000	5,817,000,000	18,285,000,000	16,758,000,000
Operating costs and expenses	1,433,000,000	1,510,000,000	4,222,000,000	4,227,000,000
Pension and other postretirement remeasurement gains and losses	0	0	0	0
Restructuring and related charges	0	16,000,000	27,000,000	65,000,000
Total costs and expenses	9,732,000,000	9,427,000,000	29,089,000,000	27,230,000,000
Income from operations before income tax expense	1,337,000,000	1,039,000,000	4,117,000,000	3,108,000,000
Income tax expense	266,000,000	169,000,000	839,000,000	587,000,000
Net income	1,071,000,000	870,000,000	3,278,000,000	2,521,000,000
Net income applicable to common shareholders	$ 1,029,000,000	$ 833,000,000	$ 3,175,000,000	$ 2,416,000,000
Net income available to common shareholders per common share - Basic (in dollars per share)	$ 3.14	$ 2.41	$ 9.60	$ 6.91
Net income available to common shareholders per common share - Diluted (in dollars per share)	$ 3.09	$ 2.37	$ 9.46	$ 6.80
Total shareholders’ equity	$ 26,537,000,000	$ 23,633,000,000	$ 26,537,000,000	$ 23,633,000,000
Impact of change \| Impact of change
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Property and casualty insurance claims and claims expense	(29,000,000)	(12,000,000)	(58,000,000)	(47,000,000)
Operating costs and expenses	(19,000,000)	(85,000,000)	(48,000,000)	(141,000,000)
Pension and other postretirement remeasurement gains and losses	(225,000,000)	39,000,000	(365,000,000)	32,000,000
Restructuring and related charges	0	(3,000,000)	0	(10,000,000)
Total costs and expenses	177,000,000	(139,000,000)	259,000,000	(230,000,000)
Income from operations before income tax expense	(177,000,000)	139,000,000	(259,000,000)	230,000,000
Income tax expense	(37,000,000)	30,000,000	(55,000,000)	49,000,000
Net income	(140,000,000)	109,000,000	(204,000,000)	181,000,000
Net income applicable to common shareholders	$ (140,000,000)	$ 109,000,000	$ (204,000,000)	$ 181,000,000
Net income available to common shareholders per common share - Basic (in dollars per share)	$ (0.43)	$ 0.31	$ (0.62)	$ 0.52
Net income available to common shareholders per common share - Diluted (in dollars per share)	$ (0.42)	$ 0.31	$ (0.61)	$ 0.51
Total shareholders’ equity	$ (397,000,000)	$ 26,000,000	$ (397,000,000)	$ 26,000,000	$ (12,000,000)		$ (18,000,000)			$ 0
Retained income
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net income	931,000,000	979,000,000	3,074,000,000	2,702,000,000
Total shareholders’ equity	46,527,000,000	44,776,000,000	46,527,000,000	44,776,000,000		$ 45,803,000,000		44,033,000,000	$ 43,997,000,000		$ 41,579,000,000
Retained income \| Previously reported
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net income	1,071,000,000	870,000,000	3,278,000,000	2,521,000,000
Total shareholders’ equity	48,406,000,000	46,178,000,000	48,406,000,000	46,178,000,000		47,542,000,000		45,708,000,000	45,508,000,000		43,162,000,000
Retained income \| Impact of change \| Impact of change
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net income	(140,000,000)	109,000,000	(204,000,000)	181,000,000
Total shareholders’ equity	$ (1,879,000,000)	$ (1,402,000,000)	$ (1,879,000,000)	$ (1,402,000,000)		$ (1,739,000,000)		$ (1,675,000,000)	$ (1,511,000,000)	$ (1,580,000,000)	$ (1,583,000,000)

General - Statement of Comprehensive Income (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net income	$ 931	$ 979	$ 3,074	$ 2,702
Unrealized net capital gains and losses	369	(70)	2,025	(768)
Unrealized foreign currency translation adjustments	(10)	(14)	(1)	(22)
Change in unamortized pension and other postretirement prior service credit	(12)	(15)	(35)	(45)
Other comprehensive income (loss), after-tax	347	(99)	1,989	(835)
Comprehensive income	1,278	880	5,063	1,867
Previously reported
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net income	1,071	870	3,278	2,521
Unrealized net capital gains and losses	369	(70)	2,025	(768)
Unrealized foreign currency translation adjustments	(12)	(14)	2	(25)
Change in unamortized pension and other postretirement prior service credit	20	68	155	113
Other comprehensive income (loss), after-tax	377	(16)	2,182	(680)
Comprehensive income	1,448	854	5,460	1,841
Impact of change \| Impact of change
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net income	(140)	109	(204)	181
Unrealized net capital gains and losses	0	0	0	0
Unrealized foreign currency translation adjustments	2	0	(3)	3
Change in unamortized pension and other postretirement prior service credit	(32)	(83)	(190)	(158)
Other comprehensive income (loss), after-tax	(30)	(83)	(193)	(155)
Comprehensive income	$ (170)	$ 26	$ (397)	$ 26

General - Statement of Financial Position (Details) - USD ($)	Sep. 30, 2019	Jul. 01, 2019	Jan. 01, 2019	Dec. 31, 2018	Sep. 30, 2018	Jan. 01, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Deferred income taxes	$ 1,079,000,000			$ 425,000,000
Other liabilities and accrued expenses	9,729,000,000			7,737,000,000
Total liabilities	94,933,000,000			90,937,000,000
Retained income	46,527,000,000			44,033,000,000
Unrealized foreign currency translation adjustments	(50,000,000)			(49,000,000)
Unrecognized pension and other postretirement benefit cost	134,000,000			169,000,000
Total AOCI	2,107,000,000			118,000,000
Total shareholders’ equity	26,140,000,000			21,312,000,000	$ 23,659,000,000
Previously reported
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Deferred income taxes	1,185,000,000
Other liabilities and accrued expenses	9,226,000,000
Total liabilities	94,536,000,000
Retained income	48,406,000,000			45,708,000,000
Unrealized foreign currency translation adjustments	(62,000,000)			(64,000,000)
Unrecognized pension and other postretirement benefit cost	(1,336,000,000)			(1,491,000,000)
Total AOCI	625,000,000			(1,557,000,000)
Total shareholders’ equity	26,537,000,000				23,633,000,000
Impact of change \| Impact of change
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Deferred income taxes	(106,000,000)
Other liabilities and accrued expenses	503,000,000
Total liabilities	397,000,000
Retained income	(1,879,000,000)			(1,675,000,000)
Unrealized foreign currency translation adjustments	12,000,000			15,000,000
Unrecognized pension and other postretirement benefit cost	1,470,000,000			1,660,000,000
Total AOCI	1,482,000,000			$ 1,675,000,000
Total shareholders’ equity	$ (397,000,000)	$ (12,000,000)	$ (18,000,000)		$ 26,000,000	$ 0

General - Statement of Shareholders' Equity (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Jul. 01, 2019	Jan. 01, 2019	Jul. 01, 2018	Jan. 01, 2018
Increase (decrease) in equity
Balance, beginning of period			$ 21,312
Net income	$ 931	$ 979	3,074	$ 2,702
Unrealized net capital gains and losses	369	(70)	2,025	(768)
Unrealized foreign currency translation adjustments	(10)	(14)	(1)	(22)
Change in unamortized pension and other postretirement prior service credit	(12)	(15)	(35)	(45)
Balance, end of period	26,140	23,659	26,140	23,659
Retained income
Increase (decrease) in equity
Balance, beginning of period	45,803	43,997	44,033	41,579
Cumulative effect of change in accounting principle					$ 0	$ 21	$ 0	$ 1,088
Net income	931	979	3,074	2,702
Dividends on common stock	(165)	(163)	(498)	(488)
Dividends on preferred stock	(42)	(37)	(103)	(105)
Balance, end of period	46,527	44,776	46,527	44,776
Accumulated other comprehensive income (loss)
Increase (decrease) in equity
Balance, beginning of period	1,760	243	118	1,889
Cumulative effect of change in accounting principle					0	0	0	(910)
Unrealized net capital gains and losses	369	(70)	2,025	(768)
Unrealized foreign currency translation adjustments	(10)	(14)	(1)	(22)
Change in unamortized pension and other postretirement prior service credit	(12)	(15)	(35)	(45)
Balance, end of period	2,107	144	2,107	144
Previously reported
Increase (decrease) in equity
Net income	1,071	870	3,278	2,521
Unrealized net capital gains and losses	369	(70)	2,025	(768)
Unrealized foreign currency translation adjustments	(12)	(14)	2	(25)
Change in unamortized pension and other postretirement prior service credit	20	68	155	113
Balance, end of period	26,537	23,633	26,537	23,633
Previously reported \| Retained income
Increase (decrease) in equity
Balance, beginning of period	47,542	45,508	45,708	43,162
Cumulative effect of change in accounting principle					0	21	0	1,088
Net income	1,071	870	3,278	2,521
Dividends on common stock	(165)	(163)	(498)	(488)
Dividends on preferred stock	(42)	(37)	(103)	(105)
Balance, end of period	48,406	46,178	48,406	46,178
Previously reported \| Accumulated other comprehensive income (loss)
Increase (decrease) in equity
Balance, beginning of period	248	(1,268)	(1,557)	306
Cumulative effect of change in accounting principle					0	0	0	(910)
Unrealized net capital gains and losses	369	(70)	2,025	(768)
Unrealized foreign currency translation adjustments	(12)	(14)	2	(25)
Change in unamortized pension and other postretirement prior service credit	20	68	155	113
Balance, end of period	625	(1,284)	625	(1,284)
Impact of change \| Impact of change
Increase (decrease) in equity
Net income	(140)	109	(204)	181
Unrealized net capital gains and losses	0	0	0	0
Unrealized foreign currency translation adjustments	2	0	(3)	3
Change in unamortized pension and other postretirement prior service credit	(32)	(83)	(190)	(158)
Balance, end of period	(397)	26	(397)	26
Impact of change \| Impact of change \| Retained income
Increase (decrease) in equity
Balance, beginning of period	(1,739)	(1,511)	(1,675)	(1,583)
Cumulative effect of change in accounting principle					0	0	0	0
Net income	(140)	109	(204)	181
Dividends on common stock	0	0	0	0
Dividends on preferred stock	0	0	0	0
Balance, end of period	(1,879)	(1,402)	(1,879)	(1,402)
Impact of change \| Impact of change \| Accumulated other comprehensive income (loss)
Increase (decrease) in equity
Balance, beginning of period	1,512	1,511	1,675	1,583
Cumulative effect of change in accounting principle					$ 0	$ 0	$ 0	$ 0
Unrealized net capital gains and losses	0	0	0	0
Unrealized foreign currency translation adjustments	2	0	(3)	3
Change in unamortized pension and other postretirement prior service credit	(32)	(83)	(190)	(158)
Balance, end of period	$ 1,482	$ 1,428	$ 1,482	$ 1,428

General - Statement of Cash Flows (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net income	$ 931	$ 979	$ 3,074	$ 2,702
Pension and other postretirement remeasurement gains and losses	225	(39)	365	(32)
Income taxes			254	(178)
Other operating assets and liabilities			(181)	335
Net cash provided by operating activities			3,895	3,818
Previously reported
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net income	1,071	870	3,278	2,521
Pension and other postretirement remeasurement gains and losses			0	0
Income taxes			309	(227)
Other operating assets and liabilities			(75)	533
Net cash provided by operating activities			3,895	3,818
Impact of change \| Impact of change
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net income	$ (140)	$ 109	(204)	181
Pension and other postretirement remeasurement gains and losses			365	(32)
Income taxes			(55)	49
Other operating assets and liabilities			(106)	(198)
Net cash provided by operating activities			$ 0	$ 0

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Earnings per Common Share - Computation earnings per common share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Numerator:
Net income	$ 931	$ 979	$ 3,074	$ 2,702
Less: Preferred stock dividends	42	37	103	105
Net income applicable to common shareholders	$ 889	$ 942	$ 2,971	$ 2,597
Denominator:
Weighted average common shares outstanding (in shares)	327.7	346.0	330.8	349.7
Effect of dilutive potential common shares:
Stock options (in shares)	3.4	3.8	3.2	3.8
Restricted stock units (non-participating) and performance stock awards (in shares)	1.9	1.9	1.7	1.9
Weighted average common and dilutive potential common shares outstanding (in shares)	333.0	351.7	335.7	355.4
Earnings per common share - Basic (in dollars per share)	$ 2.71	$ 2.72	$ 8.98	$ 7.43
Earnings per common share - Diluted (in dollars per share)	$ 2.67	$ 2.68	$ 8.85	$ 7.31
Anti-dilutive options excluded from diluted earnings per common share (in shares)	1.8	2.3	3.7	1.9

Acquisitions (Details) - USD ($) $ in Millions	Nov. 30, 2018	Oct. 05, 2018	Sep. 30, 2019	Feb. 12, 2019	Dec. 31, 2018
Business Acquisition [Line Items]
Goodwill			$ 2,545		$ 2,530
iCracked
Business Acquisition [Line Items]
Goodwill				$ 17
PlumChoice, Inc
Business Acquisition [Line Items]
Goodwill	$ 23
Payments to acquire businesses	$ 30
InfoArmor
Business Acquisition [Line Items]
Goodwill		$ 318
Payments to acquire businesses		525
Intangible assets		257
Customer Relationships \| InfoArmor
Business Acquisition [Line Items]
Intangible assets		225
Technology-Based Intangible Assets \| InfoArmor
Business Acquisition [Line Items]
Intangible assets		$ 32

Reportable Segments - Revenue information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Segment Reporting Information
Net investment income	$ 880	$ 844	$ 2,470	$ 2,454
Realized capital gains and losses	197	176	1,183	17
Total revenues	11,069	10,465	33,203	30,334
Other revenue
Segment Reporting Information
Revenue	273	238	794	682
Property-Liability
Segment Reporting Information
Net investment income	448	410	1,210	1,100
Operating Segments \| Property-Liability
Segment Reporting Information
Revenue	8,782	8,320	25,970	24,528
Net investment income	448	410	1,210	1,100
Realized capital gains and losses	163	126	916	16
Total revenues	9,588	9,048	28,657	26,194
Operating Segments \| Property-Liability \| Auto
Segment Reporting Information
Revenue	6,080	5,798	18,045	17,094
Operating Segments \| Property-Liability \| Homeowners
Segment Reporting Information
Revenue	1,997	1,891	5,890	5,603
Operating Segments \| Property-Liability \| Other personal lines
Segment Reporting Information
Revenue	469	455	1,390	1,354
Operating Segments \| Property-Liability \| Commercial lines
Segment Reporting Information
Revenue	236	176	645	477
Operating Segments \| Property-Liability \| Other revenue
Segment Reporting Information
Revenue	195	192	561	550
Operating Segments \| Allstate Protection
Segment Reporting Information
Revenue	8,782	8,320	25,970	24,528
Operating Segments \| Discontinued Lines and Coverages
Segment Reporting Information
Revenue	0	0	0	0
Operating Segments \| Service Businesses
Segment Reporting Information
Intersegment premiums and service fees	44	31	110	89
Net investment income	11	7	30	18
Realized capital gains and losses	4	0	21	(6)
Total revenues	418	329	1,215	962
Operating Segments \| Service Businesses \| Other revenue
Segment Reporting Information
Revenue	47	16	142	48
Operating Segments \| Service Businesses \| Consumer product protection plans
Segment Reporting Information
Revenue	163	125	461	369
Operating Segments \| Service Businesses \| Roadside assistance
Segment Reporting Information
Revenue	57	66	183	198
Operating Segments \| Service Businesses \| Finance and insurance products
Segment Reporting Information
Revenue	92	84	268	246
Operating Segments \| Allstate Life
Segment Reporting Information
Net investment income	128	128	380	380
Realized capital gains and losses	5	(3)	1	(9)
Total revenues	495	477	1,473	1,430
Operating Segments \| Allstate Life \| Other revenue
Segment Reporting Information
Revenue	31	30	91	84
Operating Segments \| Allstate Life \| Traditional life insurance premiums
Segment Reporting Information
Revenue	155	149	465	443
Operating Segments \| Allstate Life \| Accident and health insurance premiums
Segment Reporting Information
Revenue	0	0	1	1
Operating Segments \| Allstate Life \| Interest-sensitive life insurance contract charges
Segment Reporting Information
Revenue	176	173	535	531
Operating Segments \| Allstate Benefits
Segment Reporting Information
Net investment income	21	19	61	57
Realized capital gains and losses	2	2	8	0
Total revenues	314	306	932	911
Operating Segments \| Allstate Benefits \| Traditional life insurance premiums
Segment Reporting Information
Revenue	12	13	31	32
Operating Segments \| Allstate Benefits \| Accident and health insurance premiums
Segment Reporting Information
Revenue	250	246	746	739
Operating Segments \| Allstate Benefits \| Interest-sensitive life insurance contract charges
Segment Reporting Information
Revenue	29	26	86	83
Operating Segments \| Allstate Annuities
Segment Reporting Information
Net investment income	251	260	737	843
Realized capital gains and losses	20	51	224	28
Total revenues	274	316	971	882
Operating Segments \| Allstate Annuities \| Fixed annuities contract charges
Segment Reporting Information
Revenue	3	5	10	11
Operating Segments \| Corporate and Other
Segment Reporting Information
Net investment income	21	20	52	56
Realized capital gains and losses	3	0	13	(12)
Total revenues	24	20	65	44
Intersegment Eliminations
Segment Reporting Information
Total revenues	$ (44)	$ (31)	$ (110)	$ (89)

Reportable Segments - Financial performance (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Segment Reporting Information
Net investment income	$ 880,000,000	$ 844,000,000	$ 2,470,000,000	$ 2,454,000,000
Net income applicable to common shareholders	889,000,000	942,000,000	2,971,000,000	2,597,000,000
Allstate Protection
Segment Reporting Information
Underwriting income (loss)	836,000,000	587,000,000	1,909,000,000	2,053,000,000
Discontinued Lines and Coverages
Segment Reporting Information
Underwriting income (loss)	(99,000,000)	(80,000,000)	(105,000,000)	(86,000,000)
Property-Liability
Segment Reporting Information
Underwriting income (loss)	737,000,000	507,000,000	1,804,000,000	1,967,000,000
Net investment income	448,000,000	410,000,000	1,210,000,000	1,100,000,000
Income tax expense on operations	(236,000,000)	(185,000,000)	(617,000,000)	(628,000,000)
Realized capital gains and losses, after-tax	127,000,000	103,000,000	724,000,000	16,000,000
Tax Legislation expense (benefit)	0	(3,000,000)	0	(3,000,000)
Net income applicable to common shareholders	1,076,000,000	832,000,000	3,121,000,000	2,452,000,000
Service Businesses
Segment Reporting Information
Adjusted net income	8,000,000	1,000,000	35,000,000	0
Realized capital gains and losses, after-tax	4,000,000	(1,000,000)	17,000,000	(5,000,000)
Amortization of purchased intangibles, after-tax	(25,000,000)	(16,000,000)	(74,000,000)	(48,000,000)
Impairment of purchased intangibles, after-tax	0		(43,000,000)	0
Tax Legislation expense (benefit)	0	(4,000,000)	0	(4,000,000)
Net income applicable to common shareholders	(13,000,000)	(20,000,000)	(65,000,000)	(57,000,000)
Allstate Life
Segment Reporting Information
Adjusted net income	44,000,000	75,000,000	185,000,000	226,000,000
Realized capital gains and losses, after-tax	4,000,000	(3,000,000)	0	(7,000,000)
Valuation changes on embedded derivatives not hedged, after-tax	(9,000,000)	0	(9,000,000)
DAC and DSI amortization related to realized capital gains and losses, after-tax	1,000,000	(1,000,000)	(2,000,000)	(6,000,000)
Tax Legislation expense (benefit)	0	(16,000,000)	0	(16,000,000)
Net income applicable to common shareholders	40,000,000	55,000,000	174,000,000	197,000,000
Allstate Benefits
Segment Reporting Information
Adjusted net income	31,000,000	33,000,000	99,000,000	98,000,000
Realized capital gains and losses, after-tax	2,000,000	2,000,000	7,000,000	0
Net income applicable to common shareholders	33,000,000	35,000,000	106,000,000	98,000,000
Allstate Annuities
Segment Reporting Information
Adjusted net income	16,000,000	20,000,000	43,000,000	99,000,000
Realized capital gains and losses, after-tax	16,000,000	40,000,000	177,000,000	22,000,000
Valuation changes on embedded derivatives not hedged, after-tax	(1,000,000)	1,000,000	(6,000,000)	5,000,000
Gain on disposition of operations, after-tax	0	1,000,000	2,000,000	3,000,000
Tax Legislation expense (benefit)	0	69,000,000	0	69,000,000
Net income applicable to common shareholders	31,000,000	131,000,000	216,000,000	198,000,000
Corporate and Other
Segment Reporting Information
Adjusted net income	(101,000,000)	(106,000,000)	(302,000,000)	(291,000,000)
Realized capital gains and losses, after-tax	2,000,000	0	10,000,000	(10,000,000)
Pension and other postretirement remeasurement gains and losses, after-tax	(179,000,000)	30,000,000	(289,000,000)	25,000,000
Tax Legislation expense (benefit)	0	(15,000,000)	0	(15,000,000)
Net income applicable to common shareholders	$ (278,000,000)	$ (91,000,000)	$ (581,000,000)	$ (291,000,000)

Investments - Amortized cost, gross unrealized gains and losses and fair value for fixed income securities (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Schedule of Available for Sale Securities
Amortized cost	$ 56,263	$ 57,134
Gross unrealized, Gains	3,082	993
Gross unrealized, Losses	(86)	(957)
Fair value	59,259	57,170
U.S. government and agencies
Schedule of Available for Sale Securities
Amortized cost	3,855	5,386
Gross unrealized, Gains	257	137
Gross unrealized, Losses	(1)	(6)
Fair value	4,111	5,517
Municipal
Schedule of Available for Sale Securities
Amortized cost	8,227	8,963
Gross unrealized, Gains	615	249
Gross unrealized, Losses	(4)	(43)
Fair value	8,838	9,169
Corporate
Schedule of Available for Sale Securities
Amortized cost	42,013	40,536
Gross unrealized, Gains	2,075	490
Gross unrealized, Losses	(70)	(890)
Fair value	44,018	40,136
Foreign government
Schedule of Available for Sale Securities
Amortized cost	972	739
Gross unrealized, Gains	24	13
Gross unrealized, Losses	(3)	(5)
Fair value	993	747
Asset-backed securities (“ABS”)
Schedule of Available for Sale Securities
Amortized cost	818	1,049
Gross unrealized, Gains	10	6
Gross unrealized, Losses	(6)	(10)
Fair value	822	1,045
Residential mortgage-backed securities (“RMBS”)
Schedule of Available for Sale Securities
Amortized cost	301	377
Gross unrealized, Gains	92	89
Gross unrealized, Losses	(1)	(2)
Fair value	392	464
Commercial mortgage-backed securities (“CMBS”)
Schedule of Available for Sale Securities
Amortized cost	57	63
Gross unrealized, Gains	8	8
Gross unrealized, Losses	(1)	(1)
Fair value	64	70
Redeemable preferred stock
Schedule of Available for Sale Securities
Amortized cost	20	21
Gross unrealized, Gains	1	1
Gross unrealized, Losses	0	0
Fair value	$ 21	$ 22

Investments - Scheduled maturities for fixed income securities (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Amortized cost
Due in one year or less	$ 3,026
Due after one year through five years	25,251
Due after five years through ten years	17,315
Due after ten years	9,495
Subtotal	55,087
ABS, RMBS and CMBS	1,176
Amortized cost	56,263	$ 57,134
Fair value
Due in one year or less	3,050
Due after one year through five years	25,913
Due after five years through ten years	18,290
Due after ten years	10,728
Subtotal	57,981
ABS, RMBS and CMBS	1,278
Total fixed income securities	$ 59,259	$ 57,170

Investments - Net investment income (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Net Investment Income:
Investment income, before expense	$ 948	$ 914	$ 2,679	$ 2,655
Investment expense	(68)	(70)	(209)	(201)
Net investment income	880	844	2,470	2,454
Fixed income securities
Net Investment Income:
Investment income, before expense	546	527	1,627	1,544
Equity securities
Net Investment Income:
Investment income, before expense	57	35	155	130
Mortgage loans
Net Investment Income:
Investment income, before expense	54	52	161	163
Limited partnership interests
Net Investment Income:
Investment income, before expense	197	210	460	563
Short-term investments
Net Investment Income:
Investment income, before expense	28	19	80	50
Other
Net Investment Income:
Investment income, before expense	$ 66	$ 71	$ 196	$ 205

Investments - Realized capital gains and losses by asset type (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Realized capital gains and losses by asset type
Realized capital gains and losses	$ 197	$ 176	$ 1,183	$ 17
Fixed income securities
Realized capital gains and losses by asset type
Realized capital gains and losses	147	(30)	290	(153)
Equity securities
Realized capital gains and losses by asset type
Realized capital gains and losses	40	223	771	204
Mortgage loans
Realized capital gains and losses by asset type
Realized capital gains and losses	0	0	0	2
Limited partnership interests
Realized capital gains and losses by asset type
Realized capital gains and losses	(18)	(23)	75	(56)
Derivatives
Realized capital gains and losses by asset type
Realized capital gains and losses	40	5	16	20
Other
Realized capital gains and losses by asset type
Realized capital gains and losses	$ (12)	$ 1	$ 31	$ 0

Investments - Realized capital gains and losses by transaction type (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Investments [Abstract]
Impairment write-downs	$ (14)	$ (5)	$ (43)	$ (10)
Sales	147	(22)	359	(139)
Valuation of equity investments	24	198	851	149
Valuation and settlements of derivative instruments	40	5	16	17
Total realized capital gains and losses	$ 197	$ 176	$ 1,183	$ 17

Investments - Narrative (Details) - USD ($)	3 Months Ended		9 Months Ended
Investments - Narrative (Details) - USD ($)	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Investment [Line Items]
Gross gains on fixed income securities	$ 168,000,000	$ 21,000,000	$ 409,000,000	$ 95,000,000
Gross loss on fixed income securities	(20,000,000)	(48,000,000)	(107,000,000)	(242,000,000)
Net unrealized gains related to changes in valuation of fixed income securities subsequent to impairment measurement date	179,000,000		179,000,000		$ 180,000,000
Limited partnership interests	7,990,000,000		7,990,000,000		7,505,000,000
Short-term investments	5,254,000,000		5,254,000,000		3,027,000,000
EMA limited partnerships
Investment [Line Items]
Limited partnership interests	6,230,000,000		6,230,000,000		5,730,000,000
Limited partnership interests
Investment [Line Items]
Limited partnership interests	1,760,000,000		1,760,000,000		$ 1,780,000,000
Mortgage loans, non-impaired
Investment [Line Items]
Allowance for credit losses, period increase (decrease)	0	0	0	0
Average impaired mortgage loans	$ 4,000,000	$ 4,000,000	$ 4,000,000	$ 4,000,000

Investments - Net appreciation (decline) recognized in net income (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Investment [Line Items]
Total	$ 156	$ 309	$ 845	$ 502
Equity securities
Investment [Line Items]
Total	107	234	736	321
Limited partnership interests
Investment [Line Items]
Total	$ 49	$ 75	$ 109	$ 181

Investments - OTTI losses by asset type (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Realized capital gains and losses by asset type
Gross	$ (16)	$ (4)	$ (44)	$ (8)
Included in OCI	2	(1)	1	(2)
Net	(14)	(5)	(43)	(10)
Municipal
Realized capital gains and losses by asset type
Gross	(2)	0	(2)	0
Included in OCI	2	0	2	0
Net	0	0	0	0
Corporate
Realized capital gains and losses by asset type
Gross	0	0	(5)	0
Included in OCI	0	0	(2)	0
Net	0	0	(7)	0
Asset-backed securities (“ABS”)
Realized capital gains and losses by asset type
Gross	0	0	(3)	(1)
Included in OCI	0	(1)	0	(1)
Net	0	(1)	(3)	(2)
Residential mortgage-backed securities (“RMBS”)
Realized capital gains and losses by asset type
Gross	0	0	0	(1)
Included in OCI	0	0	(1)	0
Net	0	0	(1)	(1)
Commercial mortgage-backed securities (“CMBS”)
Realized capital gains and losses by asset type
Gross	(1)	(2)	(3)	(2)
Included in OCI	0	0	2	(1)
Net	(1)	(2)	(1)	(3)
Fixed income securities
Realized capital gains and losses by asset type
Gross	(3)	(2)	(13)	(4)
Included in OCI	2	(1)	1	(2)
Net	(1)	(3)	(12)	(6)
Limited partnership interests
Realized capital gains and losses by asset type
Gross	(1)	(2)	(4)	(3)
Included in OCI	0	0	0	0
Net	(1)	(2)	(4)	(3)
Other
Realized capital gains and losses by asset type
Gross	(12)	0	(27)	(1)
Included in OCI	0	0	0	0
Net	$ (12)	$ 0	$ (27)	$ (1)

Investments - OTTI losses included in AOCI at the time of impairment for fixed income securities (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Investments [Abstract]
Net unrealized gains related to changes in valuation of fixed income securities subsequent to impairment measurement date	$ 179	$ 180
Other-than Impairment Losses Included in Accumulated Other Comprehensive Income
Amount of other-than-temporary impairment losses included in accumulated other comprehensive income for fixed income securities, not included in earnings	(76)	(86)
Municipal
Other-than Impairment Losses Included in Accumulated Other Comprehensive Income
Amount of other-than-temporary impairment losses included in accumulated other comprehensive income for fixed income securities, not included in earnings	(7)	(5)
Corporate
Other-than Impairment Losses Included in Accumulated Other Comprehensive Income
Amount of other-than-temporary impairment losses included in accumulated other comprehensive income for fixed income securities, not included in earnings	0	(2)
Asset-backed securities (“ABS”)
Other-than Impairment Losses Included in Accumulated Other Comprehensive Income
Amount of other-than-temporary impairment losses included in accumulated other comprehensive income for fixed income securities, not included in earnings	(10)	(10)
Residential mortgage-backed securities (“RMBS”)
Other-than Impairment Losses Included in Accumulated Other Comprehensive Income
Amount of other-than-temporary impairment losses included in accumulated other comprehensive income for fixed income securities, not included in earnings	(56)	(67)
Commercial mortgage-backed securities (“CMBS”)
Other-than Impairment Losses Included in Accumulated Other Comprehensive Income
Amount of other-than-temporary impairment losses included in accumulated other comprehensive income for fixed income securities, not included in earnings	$ (3)	$ (2)

Investments - Rollforward of the cumulative credit losses recognized in earnings for fixed income securities (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Credit Losses on Fixed Income Securities
Beginning balance	$ (208)	$ (206)	$ (204)	$ (226)
Additional credit loss for securities previously other-than-temporarily impaired	(1)	(3)	(8)	(5)
Additional credit loss for securities not previously other-than-temporarily impaired	0	0	(4)	(1)
Reduction in credit loss for securities disposed or collected	14	4	21	26
Change in credit loss due to accretion of increase in cash flows	0	0	0	1
Ending balance	$ (195)	$ (205)	$ (195)	$ (205)

Investments - Unrealized net capital gains and losses included in AOCI (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Fair value
Fixed income securities:	$ 59,259	$ 57,170
Short-term investments	5,254	3,027
Derivative instruments	0	0
Gross unrealized Gains
Fixed income securities	3,082	993
Short-term investments	0	0
Derivative instruments	0	0
Gross unrealized Losses
Fixed income securities	(86)	(957)
Short-term investments	0	0
Derivative instruments	(3)	(3)
Unrealized net gains (losses)
Fixed income securities	2,996	36
Short-term investments	0	0
Derivative instruments	(3)	(3)
Equity method of accounting (“EMA”) limited partnerships	(3)	0
Unrealized net capital gains and losses, pre-tax	2,990	33
Amount recognized for:
Insurance reserves	(202)	0
DAC and DSI	(221)	(33)
Amounts recognized	(423)	(33)
Deferred income taxes	(544)	(2)
Total unrealized net capital gains and losses	$ 2,023	$ (2)

Investments - Change in unrealized net capital gains and losses (Details) $ in Millions	9 Months Ended
	Sep. 30, 2019 USD ($)
Change in Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss)
Change in unrealized net capital gains and losses	$ 2,957
Amount recognized for:
Insurance reserves	(202)
DAC and DSI	(188)
Amounts recognized	(390)
Deferred income taxes	(542)
Increase in unrealized net capital gains and losses, after-tax	2,025
Fixed income securities
Change in Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss)
Change in unrealized net capital gains and losses	2,960
Derivative instruments
Change in Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss)
Change in unrealized net capital gains and losses	0
EMA limited partnerships
Change in Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss)
Change in unrealized net capital gains and losses	$ (3)

Investments - Gross unrealized losses and fair value by the type and length of time held in continuous unrealized loss position (Details) $ in Millions	Sep. 30, 2019 USD ($) contract	Dec. 31, 2018 USD ($) contract
U.S. government and agencies
Less than 12 months
Number of issues \| contract	8	11
Fair value	$ 165	$ 55
Unrealized losses	$ (1)	$ 0
12 months or more
Number of issues \| contract	17	38
Fair value	$ 48	$ 364
Unrealized losses	0	(6)
Total unrealized losses
Total unrealized losses	$ (1)	$ (6)
Municipal
Less than 12 months
Number of issues \| contract	204	943
Fair value	$ 373	$ 1,633
Unrealized losses	$ (2)	$ (10)
12 months or more
Number of issues \| contract	1	1,147
Fair value	$ 14	$ 1,554
Unrealized losses	(2)	(33)
Total unrealized losses
Total unrealized losses	$ (4)	$ (43)
Corporate
Less than 12 months
Number of issues \| contract	206	1,735
Fair value	$ 1,671	$ 19,243
Unrealized losses	$ (31)	$ (543)
12 months or more
Number of issues \| contract	96	645
Fair value	$ 973	$ 8,374
Unrealized losses	(39)	(347)
Total unrealized losses
Total unrealized losses	$ (70)	$ (890)
Foreign government
Less than 12 months
Number of issues \| contract	32	7
Fair value	$ 205	$ 20
Unrealized losses	$ (2)	$ (1)
12 months or more
Number of issues \| contract	6	27
Fair value	$ 103	$ 412
Unrealized losses	(1)	(4)
Total unrealized losses
Total unrealized losses	$ (3)	$ (5)
Asset-backed securities (“ABS”)
Less than 12 months
Number of issues \| contract	33	64
Fair value	$ 150	$ 454
Unrealized losses	$ (2)	$ (5)
12 months or more
Number of issues \| contract	20	28
Fair value	$ 122	$ 161
Unrealized losses	(4)	(5)
Total unrealized losses
Total unrealized losses	$ (6)	$ (10)
Residential mortgage-backed securities (“RMBS”)
Less than 12 months
Number of issues \| contract	26	166
Fair value	$ 15	$ 30
Unrealized losses	$ 0	$ 0
12 months or more
Number of issues \| contract	145	195
Fair value	$ 20	$ 52
Unrealized losses	(1)	(2)
Total unrealized losses
Total unrealized losses	$ (1)	$ (2)
Commercial mortgage-backed securities (“CMBS”)
Less than 12 months
Number of issues \| contract	1	3
Fair value	$ 5	$ 7
Unrealized losses	$ 0	$ 0
12 months or more
Number of issues \| contract	1	2
Fair value	$ 2	$ 0
Unrealized losses	(1)	(1)
Total unrealized losses
Total unrealized losses	$ (1)	$ (1)
Redeemable preferred stock
Less than 12 months
Number of issues \| contract	0	1
Fair value	$ 0	$ 0
Unrealized losses	$ 0	$ 0
12 months or more
Number of issues \| contract	0	0
Fair value	$ 0	$ 0
Unrealized losses	0	0
Total unrealized losses
Total unrealized losses	$ 0	$ 0
Fixed income securities
Less than 12 months
Number of issues \| contract	510	2,930
Fair value	$ 2,584	$ 21,442
Unrealized losses	$ (38)	$ (559)
12 months or more
Number of issues \| contract	286	2,082
Fair value	$ 1,282	$ 10,917
Unrealized losses	(48)	(398)
Total unrealized losses
Total unrealized losses	$ (86)	$ (957)
Investment grade fixed income securities
Less than 12 months
Number of issues \| contract	426	2,348
Fair value	$ 2,088	$ 17,485
Unrealized losses	$ (13)	$ (331)
12 months or more
Number of issues \| contract	237	2,021
Fair value	$ 991	$ 10,626
Unrealized losses	(23)	(360)
Total unrealized losses
Total unrealized losses	$ (36)	$ (691)
Below investment grade fixed income securities
Less than 12 months
Number of issues \| contract	84	582
Fair value	$ 496	$ 3,957
Unrealized losses	$ (25)	$ (228)
12 months or more
Number of issues \| contract	49	61
Fair value	$ 291	$ 291
Unrealized losses	(25)	(38)
Total unrealized losses
Total unrealized losses	$ (50)	$ (266)

Investments Investments - Gross unrealized losses by unrealized loss position and credit quality (Details) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Investment grade fixed income securities
Investment [Line Items]
Fixed income securities with unrealized loss position less than 20% of amortized cost (1) (2)	$ (23,000,000)
Fixed income securities with unrealized loss position greater than or equal to 20% of amortized cost	(13,000,000)
Total unrealized losses	(36,000,000)	$ (691,000,000)
Below investment grade fixed income securities
Investment [Line Items]
Fixed income securities with unrealized loss position less than 20% of amortized cost (1) (2)	(46,000,000)
Fixed income securities with unrealized loss position greater than or equal to 20% of amortized cost	(4,000,000)
Total unrealized losses	(50,000,000)	(266,000,000)
Unrealized losses having loss of less than twenty percent, less than 12 months	25,000,000
Unrealized losses having loss of less than twenty percent, more than 12 months	0
Fixed income securities
Investment [Line Items]
Fixed income securities with unrealized loss position less than 20% of amortized cost (1) (2)	(69,000,000)
Fixed income securities with unrealized loss position greater than or equal to 20% of amortized cost	(17,000,000)
Total unrealized losses	$ (86,000,000)	$ (957,000,000)

Investments - Carrying value of non-impaired mortgage loans summarized by debt service coverage ratio distribution (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Financing Receivable, Impaired [Line Items]
Total	$ 4,694	$ 4,670
Mortgage loans, non-impaired
Financing Receivable, Impaired [Line Items]
Fixed rate mortgage loans	4,555	4,534
Variable rate mortgage loans	133	132
Total	4,688	4,666
Below 1.0 \| Mortgage loans, non-impaired
Financing Receivable, Impaired [Line Items]
Fixed rate mortgage loans	20	6
Variable rate mortgage loans	32	31
Total	52	37
1.0 - 1.25 \| Mortgage loans, non-impaired
Financing Receivable, Impaired [Line Items]
Fixed rate mortgage loans	247	273
Variable rate mortgage loans	0	0
Total	247	273
1.26 - 1.50 \| Mortgage loans, non-impaired
Financing Receivable, Impaired [Line Items]
Fixed rate mortgage loans	1,347	1,192
Variable rate mortgage loans	18	0
Total	1,365	1,192
Above 1.50 \| Mortgage loans, non-impaired
Financing Receivable, Impaired [Line Items]
Fixed rate mortgage loans	2,941	3,063
Variable rate mortgage loans	83	101
Total	$ 3,024	$ 3,164

Investments - Net carrying value of impaired mortgage loans (Details) - Mortgage loans, non-impaired - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Net carrying value of impaired mortgage loans
Impaired mortgage loans with a valuation allowance	$ 6	$ 4
Impaired mortgage loans without a valuation allowance	0	0
Total impaired mortgage loans	6	4
Valuation allowance on impaired mortgage loans	$ 3	$ 3

Investments - Other investments by type (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Schedule of Investments [Line Items]
Other	$ 3,904	$ 3,852
Bank loans
Schedule of Investments [Line Items]
Other	1,223	1,350
Policy loans
Schedule of Investments [Line Items]
Other	892	891
Real estate
Schedule of Investments [Line Items]
Other	917	791
Agent loans
Schedule of Investments [Line Items]
Other	663	620
Derivatives and other
Schedule of Investments [Line Items]
Other	$ 209	$ 200

Fair Value of Assets and Liabilities - Narrative (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Fair value of assets and liabilities measured on recurring and non-recurring basis
Fair value	$ 59,259	$ 57,170
Significant unobservable inputs (Level 3)
Fair value of assets and liabilities measured on recurring and non-recurring basis
Assets at fair value	767
Recurring \| Significant unobservable inputs (Level 3)
Fair value of assets and liabilities measured on recurring and non-recurring basis
Fair value	367	325
Assets at fair value	767	697
Fixed Income Securities Valued Based on Nonbinding Broker Quotes
Fair value of assets and liabilities measured on recurring and non-recurring basis
Assets at fair value	87	105
Municipal Not Rated by Third Party Credit Rating Agencies
Fair value of assets and liabilities measured on recurring and non-recurring basis
Assets at fair value	37	$ 44
Limited partnership interests
Fair value of assets and liabilities measured on recurring and non-recurring basis
Commitments to invest in limited partnership interests	$ 545
Limited partnership interests \| Minimum
Fair value of assets and liabilities measured on recurring and non-recurring basis
Investment assets, useful life	10 years
Limited partnership interests \| Maximum
Fair value of assets and liabilities measured on recurring and non-recurring basis
Investment assets, useful life	12 years

Fair Value of Assets and Liabilities - Assets and liabilities measured at fair value on a recurring and non-recurring basis (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018
Assets
Fixed income securities:	$ 59,259	$ 57,170
Equity securities	8,206	5,036
Short-term investments	5,254	3,027
Other investments: Free-standing derivatives			$ 1
Separate account assets	2,942	2,805
Counterparty and cash collateral netting	$ (52)	$ (23)
% of total assets at fair value	(0.10%)	0.00%
Total	$ 77,557	$ 69,936
Liabilities
Counterparty and cash collateral netting	$ 5	$ 6
Counterparty and cash collateral netting as a percent of liabilities measured at fair value	(1.00%)	(2.10%)
U.S. government and agencies
Assets
Fixed income securities:	$ 4,111	$ 5,517
Municipal
Assets
Fixed income securities:	8,838	9,169
Foreign government
Assets
Fixed income securities:	993	747
Residential mortgage-backed securities (“RMBS”)
Assets
Fixed income securities:	392	464
Commercial mortgage-backed securities (“CMBS”)
Assets
Fixed income securities:	64	70
Redeemable preferred stock
Assets
Fixed income securities:	21	$ 22
Quoted prices in active markets for identical assets (Level 1)
Assets
Total assets at fair value	$ 16,633
% of total assets at fair value	22.00%	19.90%
Liabilities
Total recurring basis liabilities	$ (1)	$ (1)
Liabilities as a percent of liabilities measured at fair value	0.20%	0.30%
Significant other observable inputs (Level 2)
Assets
Total assets at fair value	$ 58,448
% of total assets at fair value	77.10%	79.10%
Liabilities
Total recurring basis liabilities	$ (59)	$ (62)
Liabilities as a percent of liabilities measured at fair value	11.60%	22.10%
Significant unobservable inputs (Level 3)
Assets
Total assets at fair value	$ 767
% of total assets at fair value	1.00%	1.00%
Liabilities
Total recurring basis liabilities	$ (454)	$ (224)
Liabilities as a percent of liabilities measured at fair value	89.20%	79.70%
Investments reported at NAV
Assets
Investments reported at NAV	$ 1,761	$ 1,779
Recurring
Assets
Other investments: Free-standing derivatives, Counterparty and cash collateral netting	(52)	(23)
Liabilities
Counterparty and cash collateral netting	5	6
Recurring \| Quoted prices in active markets for identical assets (Level 1)
Assets
Fixed income securities:	3,707	5,085
Equity securities	7,453	4,364
Short-term investments	2,530	1,338
Other investments: Free-standing derivatives	0	0
Separate account assets	2,942	2,805
Other assets	1	2
Total assets at fair value	16,633	13,594
Liabilities
Other liabilities: Free-standing derivatives	(1)	(1)
Recurring \| Quoted prices in active markets for identical assets (Level 1) \| U.S. government and agencies
Assets
Fixed income securities:	3,707	5,085
Recurring \| Quoted prices in active markets for identical assets (Level 1) \| Municipal
Assets
Fixed income securities:	0	0
Recurring \| Quoted prices in active markets for identical assets (Level 1) \| Corporate - public
Assets
Fixed income securities:	0	0
Recurring \| Quoted prices in active markets for identical assets (Level 1) \| Corporate - privately placed
Assets
Fixed income securities:	0	0
Recurring \| Quoted prices in active markets for identical assets (Level 1) \| Foreign government
Assets
Fixed income securities:	0	0
Recurring \| Quoted prices in active markets for identical assets (Level 1) \| ABS - CDO
Assets
Fixed income securities:	0	0
Recurring \| Quoted prices in active markets for identical assets (Level 1) \| ABS - consumer and other
Assets
Fixed income securities:	0	0
Recurring \| Quoted prices in active markets for identical assets (Level 1) \| Residential mortgage-backed securities (“RMBS”)
Assets
Fixed income securities:	0	0
Recurring \| Quoted prices in active markets for identical assets (Level 1) \| Commercial mortgage-backed securities (“CMBS”)
Assets
Fixed income securities:	0	0
Recurring \| Quoted prices in active markets for identical assets (Level 1) \| Redeemable preferred stock
Assets
Fixed income securities:	0	0
Recurring \| Significant other observable inputs (Level 2)
Assets
Fixed income securities:	55,185	51,760
Equity securities	368	331
Short-term investments	2,709	1,659
Other investments: Free-standing derivatives	186	139
Separate account assets	0	0
Other assets	0	0
Total assets at fair value	58,448	53,889
Liabilities
Other liabilities: Free-standing derivatives	(59)	(62)
Recurring \| Significant other observable inputs (Level 2) \| U.S. government and agencies
Assets
Fixed income securities:	404	432
Recurring \| Significant other observable inputs (Level 2) \| Municipal
Assets
Fixed income securities:	8,774	9,099
Recurring \| Significant other observable inputs (Level 2) \| Corporate - public
Assets
Fixed income securities:	31,538	29,200
Recurring \| Significant other observable inputs (Level 2) \| Corporate - privately placed
Assets
Fixed income securities:	12,289	10,776
Recurring \| Significant other observable inputs (Level 2) \| Foreign government
Assets
Fixed income securities:	993	747
Recurring \| Significant other observable inputs (Level 2) \| ABS - CDO
Assets
Fixed income securities:	297	263
Recurring \| Significant other observable inputs (Level 2) \| ABS - consumer and other
Assets
Fixed income securities:	447	713
Recurring \| Significant other observable inputs (Level 2) \| Residential mortgage-backed securities (“RMBS”)
Assets
Fixed income securities:	392	464
Recurring \| Significant other observable inputs (Level 2) \| Commercial mortgage-backed securities (“CMBS”)
Assets
Fixed income securities:	30	44
Recurring \| Significant other observable inputs (Level 2) \| Redeemable preferred stock
Assets
Fixed income securities:	21	22
Recurring \| Significant unobservable inputs (Level 3)
Assets
Fixed income securities:	367	325
Equity securities	385	341
Short-term investments	15	30
Other investments: Free-standing derivatives	0	1
Separate account assets	0	0
Other assets	0	0
Total assets at fair value	767	697
Liabilities
Other liabilities: Free-standing derivatives	0	0
Recurring \| Significant unobservable inputs (Level 3) \| U.S. government and agencies
Assets
Fixed income securities:	0	0
Recurring \| Significant unobservable inputs (Level 3) \| Municipal
Assets
Fixed income securities:	64	70
Recurring \| Significant unobservable inputs (Level 3) \| Corporate - public
Assets
Fixed income securities:	104	70
Recurring \| Significant unobservable inputs (Level 3) \| Corporate - privately placed
Assets
Fixed income securities:	87	90
Recurring \| Significant unobservable inputs (Level 3) \| Foreign government
Assets
Fixed income securities:	0	0
Recurring \| Significant unobservable inputs (Level 3) \| ABS - CDO
Assets
Fixed income securities:	63	6
Recurring \| Significant unobservable inputs (Level 3) \| ABS - consumer and other
Assets
Fixed income securities:	15	63
Recurring \| Significant unobservable inputs (Level 3) \| Residential mortgage-backed securities (“RMBS”)
Assets
Fixed income securities:	0	0
Recurring \| Significant unobservable inputs (Level 3) \| Commercial mortgage-backed securities (“CMBS”)
Assets
Fixed income securities:	34	26
Recurring \| Significant unobservable inputs (Level 3) \| Redeemable preferred stock
Assets
Fixed income securities:	0	0
Contractholder funds: Derivatives embedded in life and annuity contracts \| Recurring \| Quoted prices in active markets for identical assets (Level 1)
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	0	0
Contractholder funds: Derivatives embedded in life and annuity contracts \| Recurring \| Significant other observable inputs (Level 2)
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	0	0
Contractholder funds: Derivatives embedded in life and annuity contracts \| Recurring \| Significant unobservable inputs (Level 3)
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	(454)	$ (224)
Fair value
Assets
Total assets at fair value	$ 75,796
% of total assets at fair value	100.00%	100.00%
Liabilities
Total recurring basis liabilities	$ (509)	$ (281)
Liabilities as a percent of liabilities measured at fair value	100.00%	100.00%
Fair value \| Recurring
Assets
Fixed income securities:	$ 59,259	$ 57,170
Equity securities	8,206	5,036
Short-term investments	5,254	3,027
Other investments: Free-standing derivatives	134	117
Separate account assets	2,942	2,805
Other assets	1	2
Total assets at fair value	75,796	68,157
Liabilities
Other liabilities: Free-standing derivatives	(55)	(57)
Fair value \| Recurring \| U.S. government and agencies
Assets
Fixed income securities:	4,111	5,517
Fair value \| Recurring \| Municipal
Assets
Fixed income securities:	8,838	9,169
Fair value \| Recurring \| Corporate - public
Assets
Fixed income securities:	31,642	29,270
Fair value \| Recurring \| Corporate - privately placed
Assets
Fixed income securities:	12,376	10,866
Fair value \| Recurring \| Foreign government
Assets
Fixed income securities:	993	747
Fair value \| Recurring \| ABS - CDO
Assets
Fixed income securities:	360	269
Fair value \| Recurring \| ABS - consumer and other
Assets
Fixed income securities:	462	776
Fair value \| Recurring \| Residential mortgage-backed securities (“RMBS”)
Assets
Fixed income securities:	392	464
Fair value \| Recurring \| Commercial mortgage-backed securities (“CMBS”)
Assets
Fixed income securities:	64	70
Fair value \| Recurring \| Redeemable preferred stock
Assets
Fixed income securities:	21	22
Fair value \| Contractholder funds: Derivatives embedded in life and annuity contracts \| Recurring
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	(454)	(224)
Fixed Income Securities Valued Based on Nonbinding Broker Quotes
Assets
Total assets at fair value	87	105
Municipal Not Rated by Third Party Credit Rating Agencies
Assets
Total assets at fair value	$ 37	$ 44

Fair Value of Assets and Liabilities - Quantitative information about the significant unobservable inputs used in level 3 fair value measurements (Details) - Equity-indexed and forward starting options in life and annuity product contracts - Significant unobservable inputs (Level 3) $ in Millions	Sep. 30, 2019 USD ($)	Dec. 31, 2018 USD ($)
Quantitative information about the significant unobservable inputs
Fair value	$ (417)	$ (185)
Projected option cost \| Weighted Average
Quantitative information about the significant unobservable inputs
Measurement Input	0.0264	0.0174
Projected option cost \| Maximum
Quantitative information about the significant unobservable inputs
Measurement Input	0.042	0.022
Projected option cost \| Minimum
Quantitative information about the significant unobservable inputs
Measurement Input	0.010	0.010

Fair Value of Assets and Liabilities - Rollforward of level 3 assets and liabilities held at fair value on a recurring basis during the period (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation Calculation Rollforward
Balance at beginning of period	$ 610	$ 777	$ 697	$ 837
Total gains (losses) included in: net income	12	9	48	24
Total gains (losses) included in: OCI	1	(2)	7	(5)
Transfers into Level 3	50	44	70	78
Transfers out of Level 3	(42)	(62)	(204)	(203)
Purchases	143	90	331	295
Sales	(3)	(29)	(168)	(161)
Issues	0	0	0	0
Settlements	(4)	(31)	(14)	(69)
Balance at end of period	767	796	767	796
Fair Value Liabilities Measured on Recurring Basis Unobservable Input Reconciliation Calculation
Balance at the beginning of the period	(437)	(260)	(224)	(286)
Total gains (losses) included in: net income	(14)	(7)	(54)	17
Total gains (losses) included in: OCI	0	0	0	0
Transfers into Level 3	0	0	(175)	0
Transfers out of Level 3	0	0	0	0
Purchases	0	0	0	0
Sales	0	0	0	0
Issues	(9)	0	(9)	(1)
Settlements	6	1	8	4
Balance at the end of the period	(454)	(266)	(454)	(266)
Total	(2)	2	(6)	41
Realized capital gains and losses
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation Calculation Rollforward
Total gains (losses) included in: net income	7	9	38	24
Net investment income
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation Calculation Rollforward
Total gains (losses) included in: net income	5	0	10	0
Interest credited to contractholder funds
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation Calculation Rollforward
Total gains (losses) included in: net income	(13)	(9)	(56)	10
Life contract benefits
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation Calculation Rollforward
Total gains (losses) included in: net income	(1)	2	2	7
Municipal
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation Calculation Rollforward
Balance at beginning of period	63	106	70	101
Total gains (losses) included in: net income	0	0	0	1
Total gains (losses) included in: OCI	2	(1)	4	(2)
Transfers into Level 3	0	0	0	0
Transfers out of Level 3	0	(9)	(5)	(11)
Purchases	0	0	0	10
Sales	(1)	(6)	(4)	(8)
Issues	0	0	0	0
Settlements	0	(1)	(1)	(2)
Balance at end of period	64	89	64	89
Corporate - public
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation Calculation Rollforward
Balance at beginning of period	46	76	70	108
Total gains (losses) included in: net income	0	0	0	0
Total gains (losses) included in: OCI	1	(1)	3	(3)
Transfers into Level 3	0	12	0	16
Transfers out of Level 3	(7)	(4)	(47)	(9)
Purchases	66	10	86	10
Sales	(2)	(1)	(7)	(27)
Issues	0	0	0	0
Settlements	0	0	(1)	(3)
Balance at end of period	104	92	104	92
Corporate - privately placed
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation Calculation Rollforward
Balance at beginning of period	89	195	90	224
Total gains (losses) included in: net income	0	1	(1)	(1)
Total gains (losses) included in: OCI	(1)	(1)	1	(2)
Transfers into Level 3	0	0	15	20
Transfers out of Level 3	0	(20)	(2)	(49)
Purchases	1	6	2	21
Sales	0	(2)	(13)	(5)
Issues	0	0	0	0
Settlements	(2)	(12)	(5)	(41)
Balance at end of period	87	167	87	167
ABS - CDO
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation Calculation Rollforward
Balance at beginning of period	10	9	6	99
Total gains (losses) included in: net income	1	0	1	0
Total gains (losses) included in: OCI	0	1	0	1
Transfers into Level 3	50	20	51	20
Transfers out of Level 3	(5)	0	(5)	(89)
Purchases	8	0	11	0
Sales	0	0	0	0
Issues	0	0	0	0
Settlements	(1)	(1)	(1)	(2)
Balance at end of period	63	29	63	29
ABS - consumer and other
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation Calculation Rollforward
Balance at beginning of period	43	73	63	48
Total gains (losses) included in: net income	0	0	0	0
Total gains (losses) included in: OCI	0	0	0	1
Transfers into Level 3	0	12	0	22
Transfers out of Level 3	(30)	(29)	(145)	(45)
Purchases	3	33	124	108
Sales	0	(20)	(22)	(62)
Issues	0	0	0	0
Settlements	(1)	(17)	(5)	(20)
Balance at end of period	15	52	15	52
Residential mortgage-backed securities (“RMBS”)
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation Calculation Rollforward
Balance at beginning of period	1		0
Total gains (losses) included in: net income	0		0
Total gains (losses) included in: OCI	(1)		(1)
Transfers into Level 3	0		1
Transfers out of Level 3	0		0
Purchases	0		0
Sales	0		0
Issues	0		0
Settlements	0		0
Balance at end of period	0		0
Commercial mortgage-backed securities (“CMBS”)
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation Calculation Rollforward
Balance at beginning of period	34	26	26	26
Total gains (losses) included in: net income	0	0	0	0
Total gains (losses) included in: OCI	0	0	0	0
Transfers into Level 3	0	0	3	0
Transfers out of Level 3	0	0	0	0
Purchases	0	0	6	1
Sales	0	0	0	0
Issues	0	0	0	0
Settlements	0	0	(1)	(1)
Balance at end of period	34	26	34	26
Fixed income securities
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation Calculation Rollforward
Balance at beginning of period	286	485	325	606
Total gains (losses) included in: net income	1	1	0	0
Total gains (losses) included in: OCI	1	(2)	7	(5)
Transfers into Level 3	50	44	70	78
Transfers out of Level 3	(42)	(62)	(204)	(203)
Purchases	78	49	229	150
Sales	(3)	(29)	(46)	(102)
Issues	0	0	0	0
Settlements	(4)	(31)	(14)	(69)
Balance at end of period	367	455	367	455
Equity securities
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation Calculation Rollforward
Balance at beginning of period	319	291	341	210
Total gains (losses) included in: net income	11	8	49	24
Total gains (losses) included in: OCI	0	0	0	0
Transfers into Level 3	0	0	0	0
Transfers out of Level 3	0	0	0	0
Purchases	55	21	77	100
Sales	0	0	(82)	(14)
Issues	0	0	0	0
Settlements	0	0	0	0
Balance at end of period	385	320	385	320
Short-term investments
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation Calculation Rollforward
Balance at beginning of period	5	0	30	20
Total gains (losses) included in: net income	0	0	0	0
Total gains (losses) included in: OCI	0	0	0	0
Transfers into Level 3	0	0	0	0
Transfers out of Level 3	0	0	0	0
Purchases	10	20	25	45
Sales	0	0	(40)	(45)
Issues	0	0	0	0
Settlements	0	0	0	0
Balance at end of period	15	20	15	20
Free-standing derivatives, net
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation Calculation Rollforward
Balance at beginning of period	0	1	1	1
Total gains (losses) included in: net income	0	0	(1)	0
Total gains (losses) included in: OCI	0	0	0	0
Transfers into Level 3	0	0	0	0
Transfers out of Level 3	0	0	0	0
Purchases	0	0	0	0
Sales	0	0	0	0
Issues	0	0	0	0
Settlements	0	0	0	0
Balance at end of period	0	1	0	1
Contractholder funds: Derivatives embedded in life and annuity contracts
Fair Value Liabilities Measured on Recurring Basis Unobservable Input Reconciliation Calculation
Balance at the beginning of the period	(437)	(260)	(224)	(286)
Total gains (losses) included in: net income	(14)	(7)	(54)	17
Total gains (losses) included in: OCI	0	0	0	0
Transfers into Level 3	0	0	(175)	0
Transfers out of Level 3	0	0	0	0
Purchases	0	0	0	0
Sales	0	0	0	0
Issues	(9)	0	(9)	(1)
Settlements	6	1	8	4
Balance at the end of the period	$ (454)	$ (266)	$ (454)	$ (266)

Fair Value of Assets and Liabilities - Change in unrealized gains and losses included in net income for level 3 assets and liabilities (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Gains (losses) included in net income for Level 3 assets and liabilities:
Recurring Level 3 assets	$ 11	$ 8	$ 24	$ 23
Gains (losses) for Level 3 liabilities still held at the balance sheet date, included in earnings	(14)	(7)	(54)	17
Gains (losses) for Level 3 assets and liabilities still held at the balance sheet date, included in earnings	(3)	1	(30)	40
Contractholder funds: Derivatives embedded in life and annuity contracts
Gains (losses) included in net income for Level 3 assets and liabilities:
Gains (losses) for Level 3 liabilities still held at the balance sheet date, included in earnings	(14)	(7)	(54)	17
Equity securities
Gains (losses) included in net income for Level 3 assets and liabilities:
Recurring Level 3 assets	11	8	25	23
Free-standing derivatives, net
Gains (losses) included in net income for Level 3 assets and liabilities:
Recurring Level 3 assets	0	0	(1)	0
Net Investment Income
Gains (losses) included in net income for Level 3 assets and liabilities:
Recurring Level 3 assets	5	0	10	0
Realized capital gains (losses)
Gains (losses) included in net income for Level 3 assets and liabilities:
Recurring Level 3 assets	6	8	14	23
Life contract benefits
Gains (losses) included in net income for Level 3 assets and liabilities:
Recurring Level 3 assets	(1)	2	2	7
Interest credited to contractholder funds
Gains (losses) included in net income for Level 3 assets and liabilities:
Recurring Level 3 assets	$ (13)	$ (9)	$ (56)	$ 10

Fair Value of Assets and Liabilities - Carrying values and fair value estimates of financial instruments not carried at fair value (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Dec. 31, 2017
Financial assets
Mortgage loans	$ 4,694	$ 4,670
Financial liabilities
Long-term debt	6,630	6,451
Liability for collateral	2,087	1,458	$ 1,403	$ 1,124
Significant unobservable inputs (Level 3) \| Carrying value
Financial assets
Mortgage loans	4,694	4,670
Bank loans	1,223	1,350
Agent loans	663	620
Financial liabilities
Contractholder funds on investment contracts	8,619	9,250
Significant unobservable inputs (Level 3) \| Fair value
Financial assets
Mortgage loans	4,876	4,703
Bank loans	1,199	1,298
Agent loans	666	617
Financial liabilities
Contractholder funds on investment contracts	9,435	9,665
Significant other observable inputs (Level 2) \| Carrying value
Financial liabilities
Long-term debt	6,630	6,451
Liability for collateral	2,087	1,458
Significant other observable inputs (Level 2) \| Fair value
Financial liabilities
Long-term debt	7,710	6,708
Liability for collateral	$ 2,087	$ 1,458

Derivative Financial Instruments - Narrative (Details) $ in Millions	Sep. 30, 2019 USD ($) contract	Dec. 31, 2018 USD ($) contract	Sep. 30, 2018 contract
Derivative Instruments, Gain (Loss)
Derivative, number of instruments held	26,885	26,170
Cash and securities pledged as collateral by counterparties \| $	$ 48
Securities pledged as collateral to counterparties \| $	1
Collateral posted under MNAs for contracts containing credit-risk-contingent features \| $	0	$ 2
Cash and securities pledged in the form of margin deposits \| $	$ 50
Derivatives designated as fair value accounting hedging instruments
Derivative Instruments, Gain (Loss)
Derivative, number of instruments held			1
Fair Value Hedging \| Derivatives designated as fair value accounting hedging instruments
Derivative Instruments, Gain (Loss)
Derivative, number of instruments held	1
Number of foreign currency derivatives held	0		0
Cash Flow Hedging \| Derivatives designated as fair value accounting hedging instruments
Derivative Instruments, Gain (Loss)
Number of foreign currency derivatives held	0		1

Derivative Financial Instruments - Summary of the volume and fair value positions of derivative instruments (Details) $ in Millions	Sep. 30, 2019 USD ($) contract	Dec. 31, 2018 USD ($) contract	Sep. 30, 2018 contract
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Cash and securities pledged in the form of margin deposits	$ 50
Derivatives, Fair Value
Total asset derivatives, notional amount	645	$ 470
Total liability derivatives, notional amount	2,836	2,675
Total derivatives, notional amount	$ 3,481	$ 3,145
Total asset derivatives, number of contracts \| contract	13,571	13,914
Total liability derivatives, number of contracts \| contract	13,314	12,256
Total derivatives, Number of contracts \| contract	26,885	26,170
Derivative assets net amount on balance sheet	$ 150	$ 124
Asset derivatives gross amount	155	130
Asset derivatives, gross liability	(5)	(6)
Derivative liabilities net amount on balance sheet	(477)	(269)
Total derivatives, fair value, net	(327)	(145)
Liability derivatives, gross asset	32	12
Liability derivatives gross amount	(509)	$ (281)
Derivatives designated as fair value accounting hedging instruments
Derivatives, Fair Value
Total derivatives, Number of contracts \| contract			1
Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total asset derivatives, notional amount	$ 643
Total asset derivatives, number of contracts \| contract	13,571
Derivative assets net amount on balance sheet	$ 150
Asset derivatives gross amount	155
Asset derivatives, gross liability	$ (5)
Other assets \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total asset derivatives, number of contracts \| contract	2,674	1,330
Interest rate cap agreements \| Other investments \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total asset derivatives, notional amount	$ 21	$ 6
Derivative assets net amount on balance sheet	0	0
Asset derivatives gross amount	0	0
Asset derivatives, gross liability	0	0
Interest rate cap agreements \| Other liabilities & accrued expenses \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total liability derivatives, notional amount	14	31
Derivative liabilities net amount on balance sheet	0	1
Liability derivatives, gross asset	0	1
Liability derivatives gross amount	0	0
Futures \| Other assets \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total asset derivatives, notional amount	0	0
Derivative assets net amount on balance sheet	0	1
Asset derivatives gross amount	0	1
Asset derivatives, gross liability	0	0
Futures \| Other liabilities & accrued expenses \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total liability derivatives, notional amount	$ 0	$ 0
Total liability derivatives, number of contracts \| contract	2,915	1,300
Derivative liabilities net amount on balance sheet	$ 0	$ (1)
Liability derivatives, gross asset	0	0
Liability derivatives gross amount	0	(1)
Options \| Other investments \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total asset derivatives, notional amount	$ 0	$ 0
Total asset derivatives, number of contracts \| contract	9,290	11,131
Derivative assets net amount on balance sheet	$ 131	$ 115
Asset derivatives gross amount	131	115
Asset derivatives, gross liability	0	0
Futures \| Other assets \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total asset derivatives, notional amount	$ 0	$ 0
Total asset derivatives, number of contracts \| contract	1,607	1,453
Derivative assets net amount on balance sheet	$ 1	$ 1
Asset derivatives gross amount	1	1
Asset derivatives, gross liability	0	0
Futures \| Other liabilities & accrued expenses \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total liability derivatives, notional amount	$ 0
Total liability derivatives, number of contracts \| contract	1,383
Derivative liabilities net amount on balance sheet	$ (1)
Liability derivatives, gross asset	0
Liability derivatives gross amount	(1)
Total return swap agreements – fixed income \| Other investments \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total asset derivatives, notional amount	7	7
Derivative assets net amount on balance sheet	0	0
Asset derivatives gross amount	0	0
Asset derivatives, gross liability	0	0
Total return swap agreements – fixed income \| Other liabilities & accrued expenses \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total liability derivatives, notional amount	228	38
Derivative liabilities net amount on balance sheet	8	(1)
Liability derivatives, gross asset	8	0
Liability derivatives gross amount	0	(1)
Total return swap agreements – equity index \| Other investments \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total asset derivatives, notional amount	170	61
Derivative assets net amount on balance sheet	3	(2)
Asset derivatives gross amount	3	0
Asset derivatives, gross liability	0	(2)
Total return swap agreements – equity index \| Other liabilities & accrued expenses \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total liability derivatives, notional amount		71
Derivative liabilities net amount on balance sheet		(4)
Liability derivatives, gross asset		0
Liability derivatives gross amount		(4)
Options \| Other liabilities & accrued expenses \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total liability derivatives, notional amount	$ 0	$ 0
Total liability derivatives, number of contracts \| contract	9,016	10,956
Derivative liabilities net amount on balance sheet	$ (52)	$ (50)
Liability derivatives, gross asset	0	0
Liability derivatives gross amount	(52)	(50)
Foreign currency forwards \| Other investments \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total asset derivatives, notional amount	291	258
Derivative assets net amount on balance sheet	19	10
Asset derivatives gross amount	20	11
Asset derivatives, gross liability	(1)	(1)
Foreign currency forwards \| Other liabilities & accrued expenses \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total liability derivatives, notional amount	396	341
Derivative liabilities net amount on balance sheet	23	10
Liability derivatives, gross asset	24	11
Liability derivatives gross amount	(1)	(1)
Guaranteed accumulation benefits \| Contractholder funds \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total liability derivatives, notional amount	161	169
Derivative liabilities net amount on balance sheet	(21)	(25)
Liability derivatives, gross asset	0	0
Liability derivatives gross amount	(21)	(25)
Guaranteed withdrawal benefits \| Contractholder funds \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total liability derivatives, notional amount	205	210
Derivative liabilities net amount on balance sheet	(16)	(14)
Liability derivatives, gross asset	0	0
Liability derivatives gross amount	(16)	(14)
Equity-indexed and forward starting options in life and annuity product contracts \| Contractholder funds \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total liability derivatives, notional amount	1,782	1,770
Derivative liabilities net amount on balance sheet	(417)	(185)
Liability derivatives, gross asset	0	0
Liability derivatives gross amount	(417)	(185)
Credit default swaps – buying protection \| Other investments \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total asset derivatives, notional amount	149	136
Derivative assets net amount on balance sheet	(4)	(1)
Asset derivatives gross amount	0	2
Asset derivatives, gross liability	(4)	(3)
Credit default swaps – buying protection \| Other liabilities & accrued expenses \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total liability derivatives, notional amount	46	40
Derivative liabilities net amount on balance sheet	(1)	0
Liability derivatives, gross asset	0	0
Liability derivatives gross amount	(1)	0
Credit default swaps – selling protection \| Other investments \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total asset derivatives, notional amount	5
Derivative assets net amount on balance sheet	0
Asset derivatives gross amount	0
Asset derivatives, gross liability	0
Credit default swaps – selling protection \| Other liabilities & accrued expenses \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total liability derivatives, notional amount	4	5
Derivative liabilities net amount on balance sheet	0	0
Liability derivatives, gross asset	0	0
Liability derivatives gross amount	0	0
Other \| Other assets \| Derivatives designated as fair value accounting hedging instruments
Derivatives, Fair Value
Total asset derivatives, notional amount	2
Derivative assets net amount on balance sheet	0
Asset derivatives gross amount	0
Asset derivatives, gross liability	$ 0
Other \| Other assets \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total asset derivatives, notional amount		2
Derivative assets net amount on balance sheet		0
Asset derivatives gross amount		0
Asset derivatives, gross liability		$ 0

Derivative Financial Instruments - Gross and net amounts for OTC derivatives (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Asset derivatives
Asset derivatives gross amount	$ 155	$ 130
Asset derivatives, gross liability	(5)	(6)
Derivative assets net amount on balance sheet	150	124
Liability derivatives
Liability derivatives gross amount	(509)	(281)
Liability derivatives, gross asset	32	12
Derivative liabilities net amount on balance sheet	(477)	(269)
OTC derivatives
Asset derivatives
Asset derivatives gross amount	55	25
Asset derivatives, gross liability	(37)	(18)
Derivative, collateral, right to reclaim cash	(15)	(5)
Derivative assets net amount on balance sheet	3	2
Derivative assets received under securities collateral	0	0
Derivative asset, fair value, amount offset against collateral	3	2
Liability derivatives
Liability derivatives gross amount	(7)	(12)
Liability derivatives, gross asset	37	18
Derivative liability offsets under cash collateral pledged	(32)	(12)
Derivative liabilities net amount on balance sheet	(2)	(6)
Derivative liabilities received under securities collateral	0	0
Derivative liability, fair value, amount offset against collateral	$ (2)	$ (6)

Derivative Financial Instruments - OTC derivatives counterparty credit exposure by counterparty credit rating (Details) $ in Millions	Sep. 30, 2019 USD ($) counter-party	Dec. 31, 2018 USD ($) counter-party
Credit Derivatives
Number of counter- parties \| counter-party	7	5
Notional amount	$ 1,264	$ 764
Credit exposure	49	20
Exposure, net of collateral	$ 3	$ 1
A plus
Credit Derivatives
Number of counter- parties \| counter-party	6	3
Notional amount	$ 1,152	$ 643
Credit exposure	46	19
Exposure, net of collateral	$ 3	$ 1
A
Credit Derivatives
Number of counter- parties \| counter-party	1	2
Notional amount	$ 112	$ 121
Credit exposure	3	1
Exposure, net of collateral	$ 0	$ 0

Derivative Financial Instruments - Fair value of instruments with credit-risk-contingent features (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Gross liability fair value of contracts containing credit-risk-contingent features	$ 7	$ 11
Gross asset fair value of contracts containing credit-risk-contingent features and subject to MNAs	(7)	(5)
Collateral posted under MNAs for contracts containing credit-risk-contingent features	0	(2)
Maximum amount of additional exposure for contracts with credit-risk-contingent features if all features were triggered concurrently	$ 0	$ 4

Reserve for Property and Casualty Insurance Claims and Claims Expense - Narrative (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Increase (decrease) in claims and claims expense
Reserves for asbestos claims	$ 840		$ 866
Reinsurance recoverables for asbestos claims	387		400
Reserves for environmental claims	188		170
Reinsurance recoverables for environmental claims	42		$ 39
Catastrophe
Increase (decrease) in claims and claims expense
Total incurred	$ 2,260	$ 1,890

Reserve for Property and Casualty Insurance Claims and Claims Expense - Rollforward of the reserve for property and casualty insurance claims and claims expense (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Incurred claims and claims expense related to:
Prior years	$ (118)	$ (135)
Property-Liability
Activity in the reserve for property-liability insurance claims and claims expense:
Balance as of January 1	27,423	26,325
Less recoverables	(7,155)	(6,471)
Net balance as of January 1	20,268	19,854
Incurred claims and claims expense related to:
Current year	18,345	16,846
Prior years	(118)	(135)
Total incurred	18,227	16,711
Claims and claims expense paid related to:
Current year	(10,640)	(10,077)
Prior years	(6,872)	(6,174)
Total paid	(17,512)	(16,251)
Net balance as of September 30	20,983	20,314
Plus recoverables	7,093	6,625
Balance as of September 30	$ 28,076	$ 26,939

Reserve for Property and Casualty Insurance Claims and Claims Expense Reserve for Property and Casualty Insurance Claims and Claims Expense - Prior year reserve reestimates included in claims and claims expense (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Increase (decrease) in claims and claims expense
Prior years	$ (118)	$ (135)
Auto
Increase (decrease) in claims and claims expense
Prior years	(311)	(356)
Homeowners
Increase (decrease) in claims and claims expense
Prior years	59	46
Other personal lines
Increase (decrease) in claims and claims expense
Prior years	17	(15)
Commercial lines
Increase (decrease) in claims and claims expense
Prior years	17	107
Discontinued Lines and Coverages
Increase (decrease) in claims and claims expense
Prior years	103	85
Unfavorable reestimates		95
Service Businesses
Increase (decrease) in claims and claims expense
Prior years	(3)	(2)
Non-catastrophes
Increase (decrease) in claims and claims expense
Prior years	(171)	(180)
Non-catastrophes \| Auto
Increase (decrease) in claims and claims expense
Prior years	(302)	(319)
Non-catastrophes \| Homeowners
Increase (decrease) in claims and claims expense
Prior years	0	(38)
Non-catastrophes \| Other personal lines
Increase (decrease) in claims and claims expense
Prior years	13	(13)
Non-catastrophes \| Commercial lines
Increase (decrease) in claims and claims expense
Prior years	18	107
Non-catastrophes \| Discontinued Lines and Coverages
Increase (decrease) in claims and claims expense
Prior years	103	85
Non-catastrophes \| Service Businesses
Increase (decrease) in claims and claims expense
Prior years	(3)	(2)
Catastrophe
Increase (decrease) in claims and claims expense
Prior years	53	45
Catastrophe \| Auto
Increase (decrease) in claims and claims expense
Prior years	(9)	(37)
Catastrophe \| Homeowners
Increase (decrease) in claims and claims expense
Prior years	59	84
Reinstatement reinsurance premiums	13
Catastrophe \| Other personal lines
Increase (decrease) in claims and claims expense
Prior years	4	(2)
Catastrophe \| Commercial lines
Increase (decrease) in claims and claims expense
Prior years	(1)	0
Catastrophe \| Discontinued Lines and Coverages
Increase (decrease) in claims and claims expense
Prior years	0	0
Catastrophe \| Service Businesses
Increase (decrease) in claims and claims expense
Prior years	$ 0	$ 0

Reinsurance - Premiums earned and life premiums and contract charges (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Property and casualty insurance premiums
Reinsurance
Property and casualty insurance premiums earned	$ (289)	$ (260)	$ (836)	$ (756)
Life premiums
Reinsurance
Life premiums and contract charges	$ (68)	$ (76)	$ (200)	$ (221)

Reinsurance - Claims expense, life contract benefits and interest credited to contractholder funds (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Property and casualty insurance claims and claims expense
Reductions to costs and expenses due to reinsurance ceded amounts
Ceded losses incurred	$ (216)	$ (247)	$ (465)	$ (572)
Life contract benefits
Reductions to costs and expenses due to reinsurance ceded amounts
Ceded losses incurred	(74)	(35)	(92)	(150)
Interest credited to contractholder funds
Reductions to costs and expenses due to reinsurance ceded amounts
Ceded losses incurred	$ (6)	$ (5)	$ (14)	$ (16)

Reinsurance Reinsurance - Additional Information (Details) $ in Millions	Sep. 30, 2019 USD ($)
Reinsurance
Reinsurance recoverables	$ 9,360
Scottish Re
Reinsurance
Reinsurance recoverables	64
Life contract benefits
Reinsurance
Reinsurance recoverables	$ 781

Capital Structure (Details) - USD ($)				9 Months Ended
Capital Structure (Details) - USD ($)	Oct. 15, 2019	Aug. 08, 2019	May 16, 2019	Sep. 30, 2019	Sep. 30, 2018	Oct. 15, 2024	Jun. 10, 2019	Dec. 31, 2018
Debt outstanding:
Preferred stock, par value (in dollars per share)				$ 1				$ 1
Redemption and repayment of long-term debt				$ 317,000,000	$ 401,000,000
Senior Notes, Due 2049
Debt outstanding:
Debt instrument, face amount							$ 500,000,000
Note stated interest rate (as a percent)							3.85%
Senior Notes Due 2019 at 7.45 Percent
Debt outstanding:
Note stated interest rate (as a percent)			7.45%
Redemption and repayment of long-term debt			$ 317,000,000
Series H Preferred Stock
Debt outstanding:
Shares Issued (in shares)		46,000
Dividend Rate (in dollars per share)		5.10%
Preferred stock, par value (in dollars per share)		$ 1.00
Liquidation preference per share (in dollars per shares)		$ 25,000
Proceeds from issuance of preferred stock Gross		$ 1,150,000,000
Redemption price (in dollars per share)		$ 25,000
Period after occurrence in which redemption of debt in whole permissible		90 days
Redemption price, rating agency event (in dollars per share)		$ 25,500
Subsequent Event
Debt outstanding:
Payments for repurchase of preferred stock	$ 1,130,000,000
Redemption price in excess of carrying value	$ 37,000,000
Subsequent Event \| Series D Preferred Stock
Debt outstanding:
Preferred stock, par value (in dollars per share)	$ 1.00
Liquidation preference per share (in dollars per shares)	$ 25,000
Stock redeemed (in shares)	5,400
Subsequent Event \| Series E Preferred Stock
Debt outstanding:
Preferred stock, par value (in dollars per share)	$ 1.00
Liquidation preference per share (in dollars per shares)	$ 25,000
Stock redeemed (in shares)	29,900
Subsequent Event \| Series F Preferred Stock
Debt outstanding:
Preferred stock, par value (in dollars per share)	$ 1.00
Liquidation preference per share (in dollars per shares)	$ 25,000
Stock redeemed (in shares)	10,000
Forecast \| Series H Preferred Stock
Debt outstanding:
Redemption price (in dollars per share)						$ 25,000

Company Restructuring - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Restructuring Cost and Reserve [Line Items]
Restructuring and related charges	$ 0	$ 13	$ 27	$ 55
Employee costs
Restructuring Cost and Reserve [Line Items]
Cumulative amount incurred to date for active programs	102		102
Exit costs
Restructuring Cost and Reserve [Line Items]
Cumulative amount incurred to date for active programs	$ 10		$ 10

Company Restructuring - Changes in the restructuring liability (Details) $ in Millions	9 Months Ended
	Sep. 30, 2019 USD ($)
Restructuring Reserve
Restructuring liability as of December 31, 2018	$ 44
Expense incurred	34
Adjustments to liability	(7)
Payments	(44)
Restructuring liability as of September 30, 2019	27
Employee costs
Restructuring Reserve
Restructuring liability as of December 31, 2018	29
Expense incurred	31
Adjustments to liability	(7)
Payments	(37)
Restructuring liability as of September 30, 2019	16
Exit costs
Restructuring Reserve
Restructuring liability as of December 31, 2018	15
Expense incurred	3
Adjustments to liability	0
Payments	(7)
Restructuring liability as of September 30, 2019	$ 11

Guarantees and Contingent Liabilities (Details)	9 Months Ended
Guarantees and Contingent Liabilities (Details)	Sep. 30, 2019 USD ($)
Minimum
Proceedings:
Loss contingencies, reasonably possible pretax loss exposure in excess of the amount accrued	$ 0
Maximum
Proceedings:
Loss contingencies, reasonably possible pretax loss exposure in excess of the amount accrued	$ 75,000,000

Benefit Plans (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Benefit Plans (Details) - USD ($) $ in Millions	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Components of net periodic cost
Costs and expenses	$ (23)	$ (25)	$ (53)	$ (93)
Remeasurement gains and losses	225	(39)	365	(32)
Total net cost (benefit)	202	(64)	312	(125)
Pension benefits
Components of net periodic cost
Service cost	30	27	86	83
Interest cost	58	65	185	189
Expected return on plan assets	(103)	(103)	(297)	(323)
Amortization of prior service credit	(14)	(14)	(42)	(42)
Costs and expenses	(29)	(25)	(68)	(93)
Remeasurement of projected benefit obligation	323	(38)	1,054	(314)
Remeasurement of plan assets	(136)	4	(752)	301
Remeasurement gains and losses	187	(34)	302	(13)
Total net cost (benefit)	158	(59)	234	(106)
Postretirement benefits
Components of net periodic cost
Service cost	2	1	6	5
Interest cost	4	4	11	11
Amortization of prior service credit	0	(5)	(2)	(16)
Costs and expenses	6	0	15	0
Remeasurement of projected benefit obligation	38	(5)	63	(19)
Remeasurement of plan assets	0	0	0	0
Remeasurement gains and losses	38	(5)	63	(19)
Total net cost (benefit)	$ 44	$ (5)	$ 78	$ (19)

Benefit Plans - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Benefit Plans - Narrative (Details) - USD ($) $ in Millions	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018
Components of net periodic cost
Remeasurement gains and (losses)	$ (225)	$ 39	$ (365)	$ 32
Remeasurement due to change in weighted average discount rate	324		1,040
(Increase) decrease for remeasurement due to settlement	37	$ 3	81	$ 72
Increase (decrease) for actual return (loss)	$ 136		$ 752
Pension benefits
Components of net periodic cost
Discount rate	3.17%		3.17%		3.53%	3.87%	4.30%

Supplemental Cash Flow Information - Narrative (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Transfer from Investments	$ 187	$ 78
Non-cash financing activities related to the issuance of shares for vested restricted stock units	48	$ 30
Operating lease, payments	115
ROU asset obtained in exchange for operating lease liability	534
Accounting Standards Update 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
ROU asset obtained in exchange for operating lease liability	$ 488

Supplemental Cash Flow Information - Activities resulting from management of proceeds (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Net change in proceeds managed
Net change in fixed income securities	$ 80	$ 175
Net change in short-term investments	(709)	(454)
Operating cash flow used	(629)	(279)
Change in Liabilities for Collateral [Roll Forward]
Liabilities for collateral, beginning of period	(1,458)	(1,124)
Liabilities for collateral, end of period	(2,087)	(1,403)
Operating cash flow provided	$ 629	$ 279

Other Comprehensive Income (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Pre-tax
Other comprehensive income (loss)	$ 440	$ (127)	$ 2,522	$ (1,060)
Tax
Other comprehensive income (loss)	(93)	28	(533)	225
After-tax
Other comprehensive income (loss)	347	(99)	1,989	(835)
Unrealized net holding gains and losses arising during the period, net of related offsets
Pre-tax
Unrealized net holding gains and losses arising during the period, net of related offsets	603	(116)	2,811	(1,103)
Less: reclassification adjustment of realized capital gains and losses	136	(26)	244	(129)
Other comprehensive income (loss)	467	(90)	2,567	(974)
Tax
Unrealized net holding gains and losses arising during the period, net of related offsets	(127)	25	(593)	233
Less: reclassification adjustment of realized capital gains and losses	(29)	5	(51)	27
Other comprehensive income (loss)	(98)	20	(542)	206
After-tax
Unrealized net holding gains and losses arising during the period, net of related offsets	476	(91)	2,218	(870)
Less: reclassification adjustment of realized capital gains and losses	107	(21)	193	(102)
Other comprehensive income (loss)	369	(70)	2,025	(768)
Unrealized foreign currency translation adjustments
Pre-tax
Other comprehensive income (loss)	(12)	(18)	(1)	(28)
Tax
Other comprehensive income (loss)	2	4	0	6
After-tax
Other comprehensive income (loss)	(10)	(14)	(1)	(22)
Unamortized pension and other postretirement prior service credit
Pre-tax
Other comprehensive income (loss)	(15)	(19)	(44)	(58)
Tax
Other comprehensive income (loss)	3	4	9	13
After-tax
Other comprehensive income (loss)	$ (12)	$ (15)	$ (35)	$ (45)